Bitcoin (BTC) has advanced another 4% in the last 24 hours making its way to $50,000. As of press time, Bitcoin is trading 3.86% up at a price of $48,832 and a market cap of $920 billion.
On-chain metrics for Bitcoin (BTC) suggest strong fundamentals. For e.g. over 110K Bitcoins were withdrawn from the exchange wallets recently. Furthermore, traditional financial giants like BlackRock and Wells Fargo have announced their BTC investments recently. Meaning, institutional adoption of Bitcoin continues further.
However, as BTC makes its way to the north, it’s facing “a rare confluence of technical obstacles,” reports Bloomberg. As per the publication’s Friday report,
“An April low of about $47,000 is now acting as something of a barrier, as is a Fibonacci and Ichimoku cluster between $47,000 and $48,000, while the 61.8% Fibonacci retracement of the April to June downtrend — at $51,000 — could be an obstacle too”.
The report states that Bitcoin has a high chance of consolidating between $45,000-$48,000. Currently, BTC is already trading past $48,500.
Bitcoin Vs Gold
Jurrien Timmer, the director of the global macro at Fidelity, shares some interesting insights. Drawing BTC’s current price analogy to the early days of Goldrush in the 1970s, Timmer points out that Bitcoin is set to resume the uptrend further.
He further notes that Bitcoin’s network fundamentals are currently improving. Timmer notes that the Bitcoin network addresses holding at least $1 worth of BTC have surged past 33.5 million. These numbers were seen last time when BTC was trading at an all-time high.
In fact, bitcoin’s fundamentals (its network) are steadily improving. At the peak, there were 34.3 million addresses (with at least $1). That number fell to 31.8 million at the low and has now climbed back up to 33.5 million. /5 pic.twitter.com/i0vkLw95lx
— Jurrien Timmer (@TimmerFidelity) August 20, 2021
He also mentions another healthy indicator is the uptick in the Bitcoin hashrate. After hitting a low under 100 EH/s last month, the hashrate has resumed an uptrend. However, it is still below its peak of April 2021. But Timmer noted that the rising price action will lead to a surge in demand for mining, and thus the surge in its hashrate.