- Bitcoin is on a winning streak after gaining around 8 percent and getting back to $40,000.
- Lark Davis notes that Bitcoin has just closed its daily candle above the 200-day EMA signaling more gains to come.
Bitcoin (BTC) has staged a quick rebound after slipping from the $40K position at the start of the week. It has recently been fuelled by rumours of Amazon accepting Bitcoin for payment later in the year and Elon Musk’s Bitcoin talk with Twitter’s Jack Dorsey and ARK Invest’s Cathie Wood in which Musk confirmed that Tesla was likely to accept Bitcoin as payment again.
Early in the week, Bitcoin was able to reach $40K but lost this position after Amazon denied that it has plans to accept Bitcoin for payments. After the initial shock, Bitcoin is back to winning ways. According to our data, Bitcoin has in the last 24 hours gained as much as 8 percent to get back to the $40K levels. This pushes its weekly gains to nearly 30 percent.
The crypto king has further managed to pull with it the rest of the market. The total market cap has risen by roughly 5 percent in the last 24 hours to top $1.5 trillion.
Bitcoin (BTC) eyes $45,000
The digital asset seems to have garnered some positive momentum that is likely to see it test local highs. Analysts including Lark Davis, see Bitcoin adding to its recent gains and reaching as high as $45K in the short term. According to the pundit, the asset has managed to close its daily candle above the 200-day EMA.
#bitcoin just closed a daily candle above the 200 day EMA! This is the first time it has crossed this line since the crash started. BULLISH! pic.twitter.com/1PrC84RhEJ
— Lark Davis (@TheCryptoLark) July 28, 2021
On-chain data has shown that large holders have continued to accumulate since the May crash. Santiment shows that in the last five weeks, holders with between 100 and 10,000 BTC have accumulated roughly 130,000 coins. Of this, roughly 40,000 have come in the last 5 days as holders double their efforts. These holders are key to the long-term play with large holders less likely to be swayed by short-term price changes. But although $45K is in sight, without some major developments, BTC is likely to struggle to break above the $50K psychological level.
🐳 #Bitcoin whales holding between 100 and 10,000 $BTC continue accumulating since the May plummet that shook out many weak hands. These addresses have now accumulated 130,000 more $BTC in the past 5 weeks, and 40,000 more in just the past 10 days. 📈 https://t.co/sjslBWPa0Z pic.twitter.com/EppJ8bTX7O
— Santiment (@santimentfeed) July 27, 2021
Moreover, for the first time since the China crackdown, Bitcoin difficulty is expected to rise. This signifies an increase in hashrate after a drastic drop. The last few weeks have allowed Chinese miners to relocate, and other competing miners to expand their operations. As many experts have noted, this development is a good thing for the long term Bitcoin set-up as it encourages decentralization.
Read More: Facebook’s David Marcus explains why the China crackdown is a great development for Bitcoin
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