On August 7, the price of bitcoin peaked at $ 43,700. The cryptocurrency managed to rise to the current levels for the first time since the decline from record levels in mid-May.
Active buyers contributed to the beginning of the rise from values below $ 41,000, yesterday after 18:00 Moscow time, which is noticeable by the increased trading volume. At the same time, the volumes remain less than at the jumps in July, and are significantly inferior to the values of the previous months.
“We have reached the annual VWAP and the first strategic resistance. I think this is due to the triggering of a large number of stop orders and the closing of short positions on the exchanges, ”writes an analyst at Fomocap.
The VWAP indicator shows the volume-weighted average price over a specified period. It is believed that VWAP reflects a more realistic picture of what is happening than moving averages, as it takes into account the liquidity of the market.
“Bitcoin has fully confirmed its exit from the multi-month range, ” writes an analyst at Rekt Capital.
BTC successfully anchored the 200-day EMA as support, serving as a long-term reflection of investor sentiment. BTC has also successfully anchored the 21-week EMA as support, which is a bull market indicator. “
Analyst Willie Wu noted that long-term holders of bitcoin were building up their positions amid fluctuating asset prices “under the ceiling of resistance.” He stressed that coins are moving into “strong hands” – during bearish sentiments in the market, the opposite situation is observed.
Just a matter of patience and time before $42k breaks.
Strong HODLers, the Rick Astleys of this world, have been taking this opportunity to scoop large amounts of coinage while we’re under the resistance ceiling. pic.twitter.com/AnUL9AdIHM
— Willy Woo (@woonomic) August 6, 2021
Analysts at Santiment also noted that the price of digital gold rallied as traders “chilled to the asset,” as “historically, markets have moved in the opposite direction of the crowd’s expectations.”
📈 #Bitcoin has taken off on a #bullish #crypto Friday, touching above $43,000 for the first time since May 18th. The spike comes as traders were cooling down on $BTC, as markets historically move the opposite way of crowd expectation. Join PRO and watch. https://t.co/b3HvUPJ6Tp pic.twitter.com/KtSCeKbbQW
– Santiment (@santimentfeed) August 6, 2021
Last weekend, Bitcoin has already attempted to gain a foothold above $ 42,000, but subsequently rolled back to $ 37,000. Ethereum over the past week has surpassed Bitcoin, climbing against it to a peak of 28%. This was facilitated by the activation of the London hard fork on the ETH network.
“The ETH / BTC pair is showing a bullish breakout, and this is a recognition of the market’s openness to risk when alternative cryptocurrencies tend to outperform Bitcoin ,” writes Fairlead Strategies Founder and Managing Partner Katie Stockton.
The pair hit a two-month high at 0.073 on Thursday, breaking out of the downward triangle on the daily chart.
“This is a bullish continuation pattern. The next resistance is around 0.08, ”said CoinDesk analyst Damanik Dantes.