Bitcoin is gaining ground, approaching the key resistance barrier

• Bitcoin price rises for the second day in a row, but remains in its broad consolidating trend between $57,000 and $62,000.
• Coinglass’ long-short ratio is above one, suggesting slight bullish sentiment.
• On-chain data shows that wallets between 100 and 1,000 BTC are accumulating.

Bitcoin (BTC) rose for a second day in a row on Tuesday, breaking above $61,400 during the Asian session as market sentiment improved and amid encouraging signs from on-chain data. However, the largest crypto asset by market cap remains in a broad consolidation phase as it has traded between $57,000 and $62,000 over the past ten days, struggling to break the resistance in the upper range of the band.

Daily Market Reasons: Bitcoin Whales Add to Holdings

• Data from Santiment shows that Bitcoin wallets holding between 100 and 1,000 BTC have accumulated 94,700 BTC in the past six weeks. This represents an increase of 2.44%, indicating that this cohort of stakeholders is loading up despite the recent drop in Bitcoin’s price from $70,000 to $49,000 from late July to early August, which has brought many crypto traders.

Chart of 100 to 1000 Bitcoin holdings

• US spot Bitcoin ETFs saw a light inflow of $62.10 million on Monday, according to Coinglass data. Net flows can help gauge investor sentiment toward Bitcoin, but when they’re small — like earlier this week so far — they’re less meaningful, given that the total Bitcoin reserves held by the 11 spot Bitcoin ETFs in US is $54.25. billion. However, ETFs are racking up three consecutive days of inflows.

Bitcoin Spot ETF Net Flow Chart (USD).

• Coinglass’s long-short ratio is 1.11. This report suggests a slight bullish sentiment in the market, as the number above suggests that more trades are anticipating the price of Bitcoin to rise.

Bitcoin long-short ratio chart

• CryptoQuant’s Inter-Exchange Flow Pulse (IFP) index measures Bitcoin flows on spot and derivatives exchanges. These feeds provide insights into market trends. An increase in this index indicates more Bitcoin flows in derivatives exchanges, which is generally considered a sign of an optimistic phase. On the contrary, a drop in the index suggests that Bitcoin is exiting the derivatives exchanges, a sign of a bearish phase. In the case of BTC, the index is trading above the 90-day simple moving average, indicating that the bulls are regaining strength.

Bitcoin Inter-Exchange Flow Pulse Chart

• Japanese public company Metaplanet bought more than $3.4 million worth of Bitcoin for an August 20 notification. This follows Metaplanet’s recent decision to adopt Bitcoin as a reserve asset to address risks related to Japan’s significant debt and the volatility of the Japanese Yen (JPY). Metaplanet’s move could pave the way for wider adoption of Bitcoin and cryptocurrencies among other companies, and its total holdings are 303.09 BTC worth $18.42 million.

Technical Analysis: BTC Approaches Key Resistance

Bitcoin price continues to consolidate between $57,115 and $62,066, the 38.2% and 61.8% Fibonacci retracement levels respectively, drawn from the July 29 high to the August 5 low. time of writing.

Let’s assume that BTC rises back to the 61.8% Fibonacci retracement at $62,066. In this case, it may find some resistance at this level as it lines up with the previously breached trendline and 100-day EMA of around $62,217, making it a key resistance area.

If it fails to break above $62,066, it could drop to $57,115 before falling 19% to review the daily support level of $49,917.

On the daily chart, the Relative Strength Index (RSI) is above its neural level of 50 and the Awesome Oscillator (AO) is still trading below its neutral level of zero. For bearish momentum to sustain, both indicators must remain below their neutral levels.

BTC/USDT Daily Chart

On the other hand, if Bitcoin price can close above $62,066, a rally towards the August 2 high of $65,596 would be on the cards as it would set a higher high on the daily chart. This could see the price rise further by 6% to test the weekly resistance at $69,648.