Bitcoin climbs above $45,000 for first time since May

On Sunday, August 8, bitcoin prices for the first time since mid-May rose above $45,000, but could not hold above that level. Over the day the price of the leading cryptocurrency rose by 1.7%, for the week by 6.1%, according to CoinGecko.

As of writing, the asset is trading near $44,500.

The rise in asset prices comes amid investor expectations for the results of the upcoming U.S. Bureau of Labor Statistics report, which is due to be released on Wednesday, August 11. Analysts forecast July inflation to rise by 0.5% — in June the consumer price index in the country jumped by a record 5.4% year-on-year (the largest rise in the last 13 years).

Bulls on the crypto market welcomed the forecasts. Lex Moskovski, chief investment officer of Moskovski Capital, drew attention to a sharp rise in the rate of growth of the number of entities in the digital gold network. An entity is defined as a cluster of addresses controlled by the same network participant.

Amount of new #Bitcoin entities continues to hit ATH.

I applied more aggressive MA14 for filtering out noise. pic.twitter.com/bJS4sHop8b

— Lex Moskovski (@mskvsk) August 8, 2021

“The number of new entities in the Bitcoin network continues to hit record highs,”

Activity in the Bitcoin network has also been noted by Santiment. In their view, the return of the metric to around 1,000,000 signals bullish sentiment in the market.

🥳 #Bitcoin‘s revisit to $45k for the first time since mid-May is certainly something to celebrate. However, watch daily address activity closely now, as a subsequent rise back to the 1M+ per day levels will be key in signifying a #bullish resumption. 👀https://t.co/CX8ULJTFKA pic.twitter.com/yhOg8fFKX1

— Santiment (@santimentfeed) August 8, 2021

According to analyst Willy Woo, the bullish impulse will push the price of the leading cryptocurrency to around $53,000. He explained that this is consistent with an imbalance between supply and demand.

#Bitcoin reaching next resistance at $45K, while CME closed at $42.9K.

I think we’re in for a short-term correction. pic.twitter.com/9Re0wmiP4Z

— Michaël van de Poppe (@CryptoMichNL) August 8, 2021

Analysts at Glassnode note that in the current rally there is evidence of liquidations in the crypto-derivatives market, and in the absence of improvements in on-chain metrics this should be treated with caution.

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