Bitcoin Has the Potential to Reach Great Results
Optimism across the crypto ecosystem continues to grow as traders are becoming increasingly bullish but maintaining this momentum will to some extent rely on Bitcoin’s short-term price action. During the early morning trading hours on Monday, Bitcoin touched the $48,000 price level. But its price fell below $45,800 as bulls struggled to put a halt to the price slide.
Its surge from $29,500 on July 29 to $48,000 on Saturday resulted in the price setting in a trading range between $44,000 and $48,000 according to pseudonymous Twitter analyst Nunya Bizniz. The equilibrium point identified by Nunya Bizniz is found near $46,123. Nunya Bizniz could be hinting that after Bitcoin tests the support, buy volumes could increase. Volumes could increase because short-term traders could view the current pullback as nothing more than a support/resistance retest.
But pseudonymous trader Gas Fring suggested that a bounce at the bottom of a rising channel world trigger the same result. Gas Fring and Nunya Bizniz are using one-hour charts. So, their ideas simply refer to the possible price action outcomes of today.
Bitcoin and miners
A report from Glassnode underlined miner accumulation as another potentially bullish indicator for Bitcoin. Glassnode observed “a net reduction in compulsory sell-side pressure sourced from miners”.
The net balance position of miners continues to increase over the last two months according to Glassnodes’ report. The on-chain analytics provider also found that the net growth of miner balances reached +5k BTC/month. That result demonstrates a net reduction in compulsory sell-side pressure from miners.
China was the Bitcoin mining hub, but this year the country took measures against cryptocurrency mining. Due to China’s actions, major miners left the country. They are looking for crypto-friendly countries.
When discussing the price of Bitcoin, it is very important to mention an important level for Bitcoin. A daily close above $46,500 is the next hurdle for the world’s largest cryptocurrency. Twitter analyst Rekt Capital revealed interesting details. As can be seen from Rekt Capital’s Twitter account, the price action for Bitcoin resulted in the formation of an ascending triangle on the daily chart. Bitcoin’s price must close above the $46,500 level in order to confirm a successful test of the triangle resistance. A daily close above that level would support the continuation of the uptrend. Nonetheless, an ascending triangle breakdown could see its price slide into the low $40,000 zone.
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