Bitcoin’s price action has been thrilling enough to keep traders and investors on the edge of their seats in recent weeks. After oscillating near $45k for two days in a row, the cryptocurrency finally retested and broke through the $48k mark. In fact, at the time of publication, BTC was trading just under $49,000 on the charts. k
This provided much-needed relief to the market. Especially since Bitcoin’s break above $48k was heralded by analysts expecting a breakout.
At press time, the market appeared poised to push BTC past $50,000, with daily gains of nearly 4%. When the crypto’s RSI was examined, the same thing became clear. The indicator in question was showing an uptick at the time, emphasizing the increase in buying pressure.
Buyers appeared to be eager to secure higher levels of support as they approached the $50,000 mark. Furthermore, at the time of writing, the 200-day simple moving average (SMA) was providing much-needed support for its price.
The ideal plot for an upward trend
Bitcoin’s outflow dominance paved the way for a breakout. According to Glassnode, Bitcoin exchange flows resumed their dominance of outflows in August. Withdrawals of Bitcoin (BTC) indicated both a bullish impulse and an accumulation.
Over the last year, the market has gone through several phases of exchange flow dominance. The last time outflow dominance was seen was in late 2020, and it was followed by a bull run.
Furthermore, accumulation was aided by a significant drop in BTC Liveliness. As a result, a large portion of the coin supply is dormant, implying an increase in HODLing behavior. It also suggested that global Coin Day Accumulation has outpaced Coin Day Destroy.
The bulls’ and long-term holders’ strength in pushing BTC above $48k inevitably cleared the way for it to reach $50k. Will it happen, however?
Bitcoin has a good chance if…
If BTC remains above $48k, the chances of it rallying to $50k are extremely high. At press time, BTC was trading at $48,900, suggesting that the possibility of a repeat occurred. All that is required is a stronger push from the bulls.
In addition, Bitcoin’s breakout was confirmed by analyst Rekt Capital, who stated, “BTC’s 4HR close above the diagonal would be enough to confirm the breakout.”