Bitcoin Price Drops to $46,700 Despite Record Accumulation and Supply Shock
Aug 31, 2021
On August 31, Bitcoin hit new local lows as the market's sluggish price movement deviated even more from bullish sentiment.
Bitcoin completely avoids a bullish continuation
BTC/USD reversed at $46,700 on Bitstamp after losing $2,000 in hours, according to data from Cointelegraph Markets Pro and TradingView.
The drop, which was part of a multi-day rangebound build, culminated in a push near $48,000, with bulls still failing to gain traction for a move towards $50,000.
Crypto Ed, a well-known trader, said $48,200 was the mark to monitor for further gains.
“Retest failed overnight with that dump, displaying some difficult moves,” he wrote on the hourly chart.
“Right now, I'm working on a Bart pattern. We're still on the same page: recover that first horizontal, and we'll be fine.”
Annotated 1-hour candlestick chart of BTC/USDT (Binance). Source: Crypto Ed/ Twitter
The mood among analysts remained generally upbeat on the day, despite the fact that price action lagged behind the marked improvement in market activity.
Some noted notable accumulation at current levels, while intra-chain indicators such as illiquid supply were also a topic of discussion.
"This wave of bitcoin supply shock has the most momentum of any in recent history," said William Clemente, Blockware's lead analyst.
"We're going to go much higher in the coming months."
Bitcoin illiquid supply relative strength index vs. BTC/USD chart. Source: William Clemente/ Twitter
Ethereum on the move
As for altcoins, Solana and Polkadot stood out in the top ten cryptocurrencies by market capitalization.
SOL/USD continued to reach new highs, gaining 19% on the day and approaching the $120 mark, while DOT/USD added 9.2%.
Ethereum was also on the move, up 5% at the time of writing and surpassing $3,350 in what Cointelegraph author Michael van de Poppe called a "bullish" market.
"Ethereum is bouncing off support, as is the $BTC pair. It's looking good," he added.
ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView
Subscribe Our Newsletter
Milena
What Made Big Tech the New Defensive Stock Play? Here Is an Answer.Crises create weird bedfellows. Consider the new class of defensive stocks: utilities, consumer staples, healthcare — and Big Tech.
Stocks
Europe's energy supply is about to be put to the ultimate test. Power rates have risen again as temperatures on the continent have dropped in recent days, and the natural gas shortfall might increase if the winter is worse than typical.
Stocks
Hazem
Best Platforms to Trade Perpetual Futures in 2025Perpetual futures are becoming increasingly popular. Convenience and availability of financial products are on the minds of traders, with spiking volumes of trades and interest in general being registered by the search engines. In essence, they’re just like traditional futures contracts but never expire. This factor makes them very attractive because they enable the users […]
Trading