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By Olivia Brooke - Aug 1, 2021
The year has been Bitcoin’s best since November of 2020 when the bulls showed that they had arrived. The early part of this year saw analysts, investors, and traders extremely confident in the bulls’ abilities to sustain newly attained price levels, and it was so for the first quarter of the year until it wasn’t.
The bear market that slashed Bitcoin’s price still has its markings on the altcoin market, and even till now, Bitcoin is yet to take the leap that analysts hope will take the most valuable asset to $100,000 for the first time since its creation.
BTCUSD Chart by TradingView (Click image for larger view)
However, August seems to be coming with a different wave; a bullish one to be precise. Citing that this could be the month Bitcoin finally “raises the second leg and continue the bull run.”
From the technical charts, Bitcoin has garnered nearly 24% in daily profit, after successfully holding up the $41,000 price levels.
Expectedly, the fear and greed signal has for the first time in a long time turned bullish; meaning that the outlook for the Bitcoin market is largely in affirmation of a continuous upward movement. But what are the factors that are truly driving these views?
Since institutions entered the market, they haven’t stopped pouring in. Although some institutions took a break from securing more Bitcoins during the bear market, they’ve since made a return, with massive Bitcoin purchases in the last month. While this in itself will not single-handedly push Bitcoin’s price up, it is relevant for the market to reclaim its steps.
On the other hand, accumulation from miners and long term whales have been taking place since May, according to on-chain analysis. Hence, it’s safe to say that the fundamental state of the Bitcoin market at present is extremely bullish and that $60,000 may not be a problem for Bitcoin this time.
Meanwhile, it is important to keep in mind that mild sell-offs are still taking place as noted by Lex Moskovski;
“Some long-term Bitcoin holders are selling into this bounce with minimal profit as indicated by LTH-SOPR hitting this year’s low for two days straight. This is one of the reasons we’re still at 41k.Disbelief.”
Skeptics are also still bearish, implying that it will take more than Bitcoin sustaining $40,000 to convince the market that the bulls have truly returned. Bitcoin analyst and skeptic CryptoWhale had this to say;
“The remarkable part about this bull trap is 99% of Bitcoin traders currently think we’re still in a bull market. These fake-out rallies everyone always loses their minds over are very common in bear markets. We saw them almost every month during the 2018 Bitcoin bubble.”
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The original article written by Olivia Brooke and posted on ZyCrypto.com.
Article reposted on Markethive by Jeffrey Sloe
