Bitcoin’s ($BTC) price reclaimed $49K earlier today after falling to a new weekly low of $46,394. The top cryptocurrency managed to overcome the volatility caused by the largest exchange inflows in two years recording 1.68 million $BTC flowing to exchanges.
Bitcoin needs to close above $49,000 to mark a phenomenal weekly close. Analyst Rekt Capital noted that the top cryptocurrency needs to close above the resistance of $49,300 to set a new multi-month high. The top cryptocurrency had slid under $49,000 at the time of writing with the buy support currently looming at $48,800.
#BTC actually manages to revisit the red area following the successful retest of the previous breakout triangle
— Rekt Capital (@rektcapital) August 27, 2021
Bitcoin price broke out of a multi-month long bearish phase which saw the price stuck under $35K for the majority of the three months. However, it managed to regain a significant chunk of losses in August and currently facing a key hurdle at $50K. $BTC managed to break through the $50K barrier but couldn’t hold onto the gains.
Is $50K Final Barrier Before ATH for Bitcoin?
$50K is proving to be a critical resistance for Bitcoin despite on-chain metrics being strong and bullish. The top cryptocurrency needs to convert $50K into strong support before making a move up. While the market moved sideways over the past couple of days, BTC whales accumulated nearly a billion-dollar worth of Bitcoin, indicating their bullish mindset.
The crypto exchanges did receive a massive inflow of BTC, but at the same time, a significant chunk was moved away as well suggesting whales were behind the massive move. The Bitcoin stablecoin ratio on exchanges is still dipping indicating the selling pressure is still not high.
Crypto exchanges also saw a massive inflow of stablecoins worth $1.7 billion taking the stablecoin reserves on exchanges to an ATH above $19 billion. The stablecoin inflow on exchanges is seen as a bullish case since people often transfer stablecoins onto exchanges to invest in the crypto market. The crypto market has also become more active this month when compared to the past three months when weekends were usually dry and bearish.
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