Buying activity in Bitcoin (BTC) increased over the weekend as momentum indicators improved. The cryptocurrency broke over initial resistance at $46,000, but the relief rally could be stifled by tougher resistance at the 200-day moving average, which is now at $48,289 dollars. At the time of reporting, Bitcoin was trading at roughly $47,500, up 5% over the previous 24 hours.
On the daily chart, the relative strength index (RSI) is approaching overbought territory, similar to what happened last October before the sell-off. However, investors appear to be aiming for a 50% reversal of the four-month decline, which would result in more upside to $50,966.
The weekly chart’s momentum signals have greatly improved from the July low of $29,400. On the monthly chart, momentum is still bearish, which could delay a substantial price rebound in the near term.
On paper, the amount of coins entering this age range is already at 480k BTC, which is outstanding, but far below the levels observed in previous key bullish impulses in 2019 and 2021. Despite this, it is equivalent to the 510k BTC accumulation in March 2020, which is noteworthy given the magnitude of the economic shock comparable to present fighting, commodity inflation, and supply chain disruptions.
A continuous upward trend in both of these supply-held metrics would be a positive indicator, whereas a fall would imply a lack of incoming accumulation while LTHs increased their expenditure (Bitcoins stronger holders).