Following a second consecutive day in the red, Bitcoin and the broader market have had a bullish start to the day. A return to $43,000 levels for BTC price would indicate a breakout. The flagship currency is up 49% this year (year-to-date), though, much below its record high level of near $65,000 it had hit in April.
Bitcoin Price Action
Over the previous 24 hours, BTC/USD has moved in a range of $39,787.61 – $43,303.40, showing high volatility. Meanwhile, the entire market capitalization is around $790.7 billion, with a $43.57 billion trading volume.
After more downside was repelled, the 4-hour chart shows Bitcoin price movement starting to turn bullish again.
Bitcoin price analysis from here is optimistic, as the market refused more fall below $41,000 overnight and has since risen. As a result, it is expected for bulls to reclaim market momentum and BTC/USD to reclaim the $44,000 barrier level.
Recent data from glassnode suggests that Since January, the Lightning Network’s capacity, the amount of BTC locked inside nodes has surged by 161 percent.
It is being pointed out that, Layer 2 has been growing at a breakneck pace since early summer, with parabolic expansion.
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Macro trend for BTC still bullish
Despite this month’s losses, which were primarily due to global risk-off and huge liquidations, the underlying fundamental and on-chain trend for BTC remains solidly bullish. This is because the majority of supply is held by long-term holders and miners, who have shown no interest in selling these drawdowns.
The global market will most certainly remain volatile in the short term as it tries to negotiate the uncertainty surrounding Fed monetary policy, economic data, and the Evergrande debt issue. Once the market has regained confidence, we may expect the price to catch up to fundamentals and favorable on-chain indicators.