9 Aug 2021 | ZebPay Trade-Desk
Over the weekend, Bitcoin (BTC) crossed the $45,000 mark, rallying close to 25% since its low of $37,300 on August 5th. The asset currently trades close to $43,500. The rally was supported by good volumes and momentum, and we have seen whales buy even at these higher levels which is a bullish sign for the asset. This rally comes just days before the much-awaited US July inflation report. So far this year, bitcoin bulls have responded positively to slight spikes in inflation, and given the way the market has been the past few days, this time around the story seems no different. More importantly, on-chain metrics are also good, with new BTC entities participating in the rally. However, one must be cautious over the next few days, as typically when BTC rallies significantly, corrections historically set in soon after, as some traders look to profit book and exit their positions.
Bitcoin had a strong resistance at $42,500, the price breached the crucial level over the weekend and made the high of $45,363. Technically, the asset has made a ‘Spinning Top’ candle in an uptrend which indicates indecisiveness on the part of bulls to continue its juggernaut for the moment. $42,500 will act as crucial support and if it sustains the support then we can expect another rally, else we may see some correction, and the prices may slide to the next support level of $36,500.
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