• Bitcoin price is on a second attempt to retest $42,451 and breach it.
  • The BTC mining industry seems to have stabilized as players continue to flourish.
  • On-chain metrics support the bullish thesis, which might push the flagship cryptocurrency to $44,750.

Bitcoin price witnessed an exponential growth after weeks of downtrend or consolidation. This move retested the range high and retraced momentarily. However, the recent upswing is most likely to push through the said resistance level and tag a crucial supply zone resting above it.

The mining industry comes anew

Due to the Chinese laws around digital currency mining, the miner exodus had a major impact on the Bitcoin hash rate, miners, and the mining equipment producers. However, after weeks of migration to mining-friendly countries, Bitcoin miners are making a comeback.

In this direction, The9, a Shanghai-based mining firm, said on August 4 that its subsidiary NBTC Ltd. had partnered with Kazakhstani mining partner KazDigital to build a 100 megawatt mining facility by 2022.

On a similar note, Stronghold, a Pennsylvania-based Bitcoin mining company, reported on August 3 its plans to acquire the 33-acre Panther Creek Plant. This development shows that the mining players are optimistic about the future and plan to capitalize on the power vacuum after Chinese miners shut down their rigs.

HIVE Blockchain, a publicly-traded company, announced on August 3 that it placed orders for 4,000 machines from China’s mining equipment manufacturer Canaan. This move from the company comes as it plans to upgrade its hash rate from 925 petahash per second (PH/s) to 1 exahash per second (EH/s) by August.

From a Bitcoin adoption standpoint, Bakkt partnered with fast-food chain Quiznos to test and accept BTC by mid-August.

Speaking about this partnership, Sheela Zemlin, the Chief Revenue Officer at Bakkt, stated,

We are introducing unique experiences to Quiznos customers by enabling them to take advantage of new ways to interact with digital assets and bringing bitcoin utility to the mainstream consumer market.

NCR Corporation is acquiring the US Bitcoin ATM and kiosk operator LibertyX. Tim Vanderham, Chief Technology Officer at NCR, added that this decision comes as the company plans to address the growing consumer demand for digital currencies. Additionally, NCR wants to provide its users with the,

ability to buy and sell cryptocurrency, conduct cross-border remittance and accept digital currency payments across digital and physical channels.

Bitcoin price takes another jab at restarting the second leg-up

Bitcoin price rallied 46% from July 20 to August 1 and tagged $42,451 to set up a swing high at $42,599. 

Since this upswing, BTC has retraced 12% and is attempting another run-up that shatters the range high at $42,451. If this were to occur, it would open up the path to retesting the supply zone that extends from $43,150 to $45,321.

Interestingly, this resistance area coincides with the 50% Fibonacci retracement level of the May 10 to May 19 crash at $44,750.

Therefore, investors can expect the run-up from the current position to tag $44,750, which would represent a 10% climb from the $40,550 support level.

BTC/USDT 12-hour chart

BTC/USDT 12-hour chart

Supporting this uptrend is IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, which shows a significant resistance level around $43,859. Here roughly 76,460 addresses purchased nearly 367,000 BTC.

BTC IOMAP chart

BTC IOMAP chart

Moreover, the supply of BTC held on exchange has dropped dramatically over the past 11 days. This metric dropped from 2.58 million to 2.46 million, suggesting that roughly 120,000 BTC have left centralized entities, effectively reducing potential sell-side pressure.

BTC supply on exchanges chart

BTC supply on exchanges chart

However, investors should note that the 30-day Market Value to Realized Value (MVRV) model hovers around 8.16% and might reset to zero before heading higher, triggering a pullback. Therefore, market participants need to watch out for a retracement before the upswing is confirmed.

BTC 30-day MVRV chart

BTC 30-day MVRV chart

While things seem to be going well for Bitcoin price, the correction mentioned above could ruin the moment for bulls if it produces a swing low below $37,241. This move would set up a lower low, indicating a shift in trend favoring the bears.

However, a decisive 12-hour candlestick close below $35,618 would invalidate the bullish thesis as it would confirm the lack of buying pressure and might also catalyze a downswing to $34,666.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP