Bitcoin (BTC) neared a critical breakout point on Aug. 19 as bulls sought to transform this week’s downtrend into a battle for resistance.
Buyers and sellers close in on BTC
The move came on the back of United States bank Wells Fargo revealing that it had partnered with NYDIG to launch a Bitcoin fund. It took the pair to the border of an important price point that was previously being watched for bullish continuation — $45,600.
At the time of writing, Bitcoin traded at around $45,300, having recovered from a brief dip to $43,900. For Cointelegraph contributor Michaël van de Poppe, there was relief to be had in $44,000 remaining as support.
“Bitcoin holding support here is a great sign,” he summarized.
Beyond hourly timeframes, the overall resistance picture for the largest cryptocurrency remained the same. $47,000 and upwards hosted a large sell wall, one that Bitcoin has so far failed to crack.
On the support side, buyers were dug in at $40,000 and above, giving little room for maneuver for spot price under current conditions.
Bears have little impact as metrics point higher
As Cointelegraph reported, there remain plenty of reasons to be bullish on Bitcoin, even in the short term as price action slows.
The weekly moving average convergence/ divergence (MACD), after 11 months in negative territory, finally flipped positive last week, a classic sign that an impulsive bullish move is forthcoming
Theories this week revolve around 2021 being a so-called “double bubble” year in which BTC/USD should hit a new local peak — a pattern that would mimic 2013.
Only the Grayscale Bitcoin Trust (GBTC) lags behind the trend, now at its steepest discount to spot price since the Bitcoin price dip to $29,000 beginning in May.