On Friday, August 6, the price of the leading cryptocurrency briefly reached $43,000 (on Binance). In 24 hours, the digital gold rose more than 9%, hitting a fresh high since mid-May, according to CoinGecko.
At the time of writing, the asset was trading near $42,500. The rise was accompanied by a surge in trading volume.
Bitcoin’s market capitalization also hit a high not seen since mid-May, rising above $800 billion.
All top-10 by market cap were in the green. Over the past day, Ethereum rose 4%, Binance Coin gained nearly 5%, Cardano up 3.6%.
Analyst Willy Woo noted that long-term Bitcoin holders have been accumulating positions as the asset hovers near the ‘resistance ceiling’. He emphasised that coins are moving into ‘strong hands’ — during bear-market sentiment the opposite situation is observed.
Mid-macro view:
90 day moving average of coins moving to Mr Astley about to cross bullish. pic.twitter.com/UTuKu1Iovq— Willy Woo (@woonomic) August 6, 2021
Analysts from Santiment also noted that the price of digital gold rose when traders cooled on the asset, as markets historically move in the opposite direction of crowd expectations.
📈 #Bitcoin has taken off on a #bullish #crypto Friday, touching above $43,000 for the first time since May 18th. The spike comes as traders were cooling down on $BTC, as markets historically move the opposite way of crowd expectation. Join PRO and watch. https://t.co/b3HvUPJ6Tp pic.twitter.com/KtSCeKbbQW
— Santiment (@santimentfeed) August 6, 2021
Earlier, trader and founder of the Crypto Mentors project Nikita Semov told ForkLog that the most likely scenario for the weekend is a continuation of Bitcoin’s rotation within a local consolidation marked in blue, with a potential false breakout to $43,000-$45,000 and a return to the global range.
In July, Bloomberg Intelligence senior commodity strategist Mike McGlone said that the price is more likely to return to $60,000 than to fall to $20,000.
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