Bitcoin price gained fresh liquidity from its weekly support, but abandoned it on both accounts as it approached the $62,000 level. The largest cryptocurrency is up 1.5% on the day and 3.5% on seven days. Altcoin majors moved selectively, with ETH, ADA, AVAX and LINK all maintaining a bullish outlook.
Bitcoin Price Market Movers: Short-Term Holder Costs and Continued BTC ETF Inflows
Bitcoin price has failed several times in its attempts to break through the $62,000 resistance level, with the most critical range being between $64,000 and $66,000. Short-term holders are investors who hold BTC in their wallets for no more than 155 days.
The chart below shows that investors who hold BTC for one to three months currently have an average cost basis of $64,206, while investors who hold BTC for three to six months have an average cost of $65,898. With this in mind, the $64,000 to $66,000 range is a solid resistance level on the road to BTC price recovery.
On the bright side, as short-term holders cut losses and take profits, Bitcoin could become attractive to new investors, shaping the next bull run above $70,000.
Bitcoin ETFs have experienced net inflows over the past few days, with the latest net inflow recorded at $39.42 million on August 21. Net inflows have been stable over the past five working days, totaling $236.58 million. This means that investors are regaining confidence and are willing to bet on Bitcoin prices rising above $70,000 or even setting new highs.
BTC Price Analysis: Cultivating a Triangle Breakout
The ongoing rally began earlier this week after Bitcoin price gathered liquidity from the $58,000 support level. This action coincided with a strengthening buy signal from the Moving Average Convergence Divergence (MACD).
Although BTC has pulled back to $60,560 at the time of writing, the probability of an ascending triangle breakout remains high. This pattern formed when bulls attempted to recover from the flash crash below $50,000, but the huge supply at $61,500 and $62,000 hampered the further development of the uptrend.
Current market conditions are generally favorable for bullish outcomes, meaning that with a stronger push, Bitcoin could eventually break out and attack the previously mentioned range between $64,000 and $66,000. Traders should look for a breakout above the X-axis of 13% to $69,700. To manage risk, a stop loss would be set just below the resistance level.
Previous BTC price predictions show that Bitcoin is not out of the woods yet and could still fall to the $58,000 support level. If the MACD confirms a sell signal, more traders will consider switching to short BTC. Increased selling could cause BTC to break below the trend line and fall to the $58,000 support level, with a target of $56,000. If you expect to navigate the bull and bear markets with ease, successfully counterattack in the bear market, ensure that your earnings grow exponentially, and get rid of the shackles of the bull and bear cycles, then welcome to chat with me privately. Friends who like Ahan, please continue to pay attention, and I will bring you more exciting articles in the future. If you don’t understand or want to learn more, you can add Ahan’s VX: ZJ0306120, and you can also join the exchange group for free!
