The Bitcoin price has legs for another upswing, at least if the price action of the last two days is anything to go by.
By all means, buyers are firmly in control, unwinding losses of late August, subsequently posting impressive gains in the last week of trading.
BTC is up five percent week-to-date against the greenback at the time of writing, outperforming some altcoins at the back of increasing trading volumes.
In a recovering market, investor/trader confidence and rising participation levels are precursors forming the tailwinds of the next wave of higher highs—a welcomed development.
Bitcoin Miners are HODLing, Institutions Pouring In
Amid the expansion in prices and confidence, miners are deep in green.
Typically, Bitcoin miners play a fundamental role in securing against third-party attacks while also confirming transactions. Even so, over the years, rewards have been diminishing due to halving.
Slightly 15 months after the last halving, Bitcoin prices have more than tripled, ensuring miners are still in the green despite contractions. At spot rates, it has emerged that Hut8 is mining over $500 million of BTC every day and HODLing.
Hut8 is now mining over half a million dollars in #Bitcoin a day & HODLing all of it 🙌 pic.twitter.com/bfsy7yyW2f
— Bitcoin Magazine (@BitcoinMagazine) September 2, 2021
Their holding is a sign of market confidence, precisely what anchors the current broad recovery as they are the “central bankers” of the decentralized network. As the source, whenever they sell, their mass liquidation tends to force prices lower, impacting traders and investors.
At the same time, Bitcoin now has more institutional supporters after Vast Bank—a federally chartered bank—said it would allow users to trade and HODL BTC through their accounts.
Bitcoin Price Analysis
Bitcoin bulls have their best foot forward, as per the BTC technical analysis in the daily chart.
Building from Sep 1 and 2 gains, Bitcoin bulls are on the cusp of clearing August 2021 highs in a buy trend continuation pattern. Already, the retest of the middle BB—the 20-day moving average, which is the primary support line—is complete.
Accordingly, every low might provide an opportunity for traders to load the dips, angling for $51k—August 2021 highs—and later $60k in the medium term.
Losses below the middle BB and $46k invalidate the current uptrend.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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