Bitcoin (BTC) is set to challenge key resistance at $ 47,000 on Sept. 14 amid a perfect storm of dwindling supply and “exhausted” bears.
Retest HODLers vs. Whales in battle for $ 50,000
Cointelegraph Markets Pro and TradingView data followed BTC / USD as it hit a local high of over $ 46,600 on Bitstamp.
The pair has rallied $ 2,000 since Monday’s low of $ 43,700, with analysts expecting $ 44,000 to be support now.
For Cointelegraph employee Michaël van de Poppe, $ 47,000 has now formed a rally to trigger a bull run.
“On the flip side, Bitcoin price has to break through USD 47,000 first as that is the current resistance. If that fails, a continuation to $ 50,000 could be the final hurdle before testing the all-time highs, ”he wrote in an analysis for Cointelegraph for the day.
It used to be the sale of whales suggestions $ 47,000 will be hard to beat.
Meanwhile, trader and analyst Rekt Capital sees the return of key moving averages as an additional bullish consideration.
Not only #BTC hold this important demand area as support (orange) …
Not only $ BTC makes a weekly higher low …
But Bitcoin is making that higher low at the 21-week EMA (green)
– Rekt Capital (@rektcapital) September 14, 2021
Strong supply hits pre-bullish highs
At $ 46,000, more than ever is owned by powerful people, according to on-chain data.
Related: BTC price close to $ 46,000 with Bitcoin exchange reserves under November 2020
In its latest weekly report, The Week On-chain, analytics firm Glassnode revealed that Long Term Owners (LTH) own nearly 13 million BTC – 80% of the supply.
The strong confidence in Bitcoin this year is in stark contrast to previous eras, and the trend shows no signs of ending.
While short-term (STH) holders have consistently built a large presence in the market in the past, even the recent rally to $ 50,000 hasn’t shaken LTH’s resolve.
“LTH supply reached 79.5% of total BTC this week, which was the same as it was in October before the bull market began. In fact, based on absolute coin volume, LTH now owns the most coins in history, hitting 12.97 million BTC this week, ”noted Glassnode.
“LTH’s own supply peaks often correlate with late-stage bear markets, which are followed by supply bottlenecks and the onset of cyclical bull runs.”
As Cointelegraph reported, an impending supply shortage was the focus of analysts this week.