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The price of bitcoin regressed by 1.68% yesterday but avoided the trap of a correction. At the time of writing, the price of bitcoin is back above $46,000 and up 3.55%. More fear than harm, the bullish move is getting stronger and stronger. From now on, crossing the $50K and $55K resistance lines is more than achievable.
Bitcoin can still count on institutional investors. Glassnode has revealed another indicator that testifies to the presence of institutions on the bitcoin network. This is the dominance of transactions of one million dollars or more. According to Glassnode, the dominance of million-dollar transactions has more than doubled since September 2020 on the BTC network. The dominance of these trades has increased from 30% to 70% in the space of 11 months.
Even during the bear market period, bitcoin’s dominance did not recede. In fact, it followed the opposite movement to the crypto’s price trend. Glassnode reveals in its report:
When the market dropped to the $29,000 floor in late July, the $1 million to $10 million trade group spiked sharply, increasing its dominance by 20%… These larger trades are more likely to be accumulators than sellers, which is again quite constructive for the price.
This accumulation trend is confirmed by Santiment. The crypto analysis firm reported in a tweet:
Addresses of #Bitcoin millionaires holding between $100 and $10,000BTC are showing no signs of taking profits on this rise we’ve seen over the past two weeks. These holders hold a total of $9.23 millionBTC, which is their #AllTimeHigh from July 28.
The $48,000 mark very decisive for the uptrend
It’s clear that bitcoin is headed straight for the $48,000 resistance. For crypto analyst, Michaël Van de Poppe, this line of resistance is an important point to see if the could retest its highs. In one of his articles on Cointelegraph, he wrote:
The market is approaching a substantial resistance area, as a break above $48K would indicate a bullish continuation and a potential test of all-time highs.
The author goes on to point out that if bitcoin fails to surpass $48,000, the risk of a correction below $40,000 is imminent.
Therefore, if the market cannot surpass $48,000 in the coming weeks, the level to watch for support and ultimately the critical level to sustain this momentum is around $37,500.
Given the On-Chain bullish factors, it shouldn’t take too long for bitcoin to cross the $50,000 resistance line. The technical analysis metrics also argue in favor of building the bullish move. The RSI is in the runaway zone with a value of 70.12. The current price of bitcoin is trading above both the 200-day moving average ($46,156) and the 20-day moving average ($41,125).