CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
  • Market Updates
  • BTC Analysis
  • ETH Analysis
  • XRP Analysis
  • Interviews
CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
Home » BTC » Bitcoin Price Analysis: BTC Approaching $50K With a Solid Weekend Rally

Bitcoin Price Analysis: BTC Approaching $50K With a Solid Weekend Rally

Author: DanBTC916

Last Updated Sep 18, 2021 @ 11:43
Getting your audio player ready...

BTC has been showing near-term signs of strength, especially after reclaiming the 200-moving average on the 4-hour chart and holding $47.2k, a key level of support.

What’s notable is that Bitcoin managed to hold support despite global stocks selling off with the dollar rising. Near term, BTC has managed to reclaim the critical 200-day moving average, 21-day, the 21-day exponential moving average, and the 200-moving average on the 4-hour chart. This is quite impressive considering that global stocks have been selling off.

IMG_5457-min-scaled.jpeg
Chart by TradingView

Strong Hands not Selling

The near-term positivity is likely from continuing strength in on-chain metrics particularly with strong hands holding large amounts of older coins while younger coins sell. The market is back in profit according to the adjusted SOPR metric – a positive signal as BTC was testing a break-even point in the 45k range earlier this week.

The open interest was flushed out on the day El Salvador adopted Bitcoin as legal tender, consolidated, and has recently started to trend higher. Funding rates have been neutral to negative throughout the recent recovery, indicating shorts are skeptical of the rally. The more price pushes higher, the more shorts will be pressured to cover.

The Mean Coin Age, an on-chain metric we have been watching closely, continues to make new all-time highs, a strong signal that long-term holders continue the re-accumulation phase and are not selling. Previous cycles with similar behavior have led to significant rallies higher, causing long-term holders to start distributing into strength.

IMG_5456-min-scaled.jpeg
Chart by CryptoQuant

Distribution Expected as Price Rallies

Long-term holder distribution at higher prices, especially above all-time highs, can be expected if BTC completes the bull market continuation validation phase in the coming weeks with a break above resistance between $55k to $58k. Breaking above these levels will likely send BTC towards retesting all-time highs at $64.8k, where there is very little on-chain resistance.

Upon breakout to new all-time highs, we can expect significant upside that will likely encourage some long-term holders to start distributing. Keep in mind, long term holders have historically distributed their holdings when the price is rallying significantly and particularly when older coins are in profit.

The crash to $30k from May to July did not impact long-term holders as they remained in profit. CryptoQuant on-chain analyst Gaah Cordeiro notes that they do not sell at a loss during bull markets. The LTH SOPR metric remained above 1 during the entire $30k to $40k consolidation, confirming LTHs are in profit, which strongly suggests Bitcoin is not in a bear market.

Overall, the trend in fundamentals and on-chain metrics continues to show strength and suggests higher prices, especially in the next few weeks and months. Near term, there are external caution signs such as risk off in global stocks, uncertainty over the Federal Reserve tapering, a rising dollar, and fear of the Evergrande $300B debt crisis.

Despite the near-term pressure, Bitcoin continues to show strength as the strong hands continue to hold and refuse to sell BTC at current prices. If this bullish trend continues, we can expect a potential move towards $50k next week as BTC attempts another breakout.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!


Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.
Tags: Bitcoin (BTC) Price
Enjoy reading? Share with your friends
Facebook Twitter LinkedIn Telegram

About The Author

DanBTC916
More posts by this author

Dan is a cryptocurrency Onchain/Technical analyst at a Crypto Fund with 11 years of experience in equity markets and over 4 years in crypto markets. Dan’s background and deep understanding of Finance and Economics have sparked a deep passion for the cryptocurrency markets, especially in Bitcoin. Follow Dan on Twitter

Join Our Community

FacebookX YouTubeTelegram


Editorials
5 Best Meme Coin Presales to Watch in May 2025

5 Best Meme Coin Presales to Watch in May 2025

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

11 Best Crypto Presales to Consider in May 2025

11 Best Crypto Presales to Consider in May 2025

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

The 5 Best Bitcoin Mining Pools in 2025: Complete Guide

The 5 Best Bitcoin Mining Pools in 2025: Complete Guide

The 5 Best Crypto Staking Platforms in 2025: Everything You Need to Know

The 5 Best Crypto Staking Platforms in 2025: Everything You Need to Know

Join Our Newsletter
Become a CryptoPotato VIP
One Weekly Email Can Change Your Crypto Life.
Sign-up FREE to receive our extended weekly market update and coin analysis report
We NEVER send spam. You can unsubscribe at any time.
Invalid email address
Thanks for subscribing!
Footer Logo
About
Advertise on CryptoPotato
About Us | Contact Us | Careers
Editorial Policy
Terms of service | Privacy Policy | GDPR
More Sections
IEO List | Evaluations
Airdrops
Scholarship
Disclaimer
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
© Copyright CryptoPotato 2016 - 2025
Scroll to top
One Daily Email Can Change Your Crypto Life.

Sign-up FREE to receive our extended daily market update and coin analysis report

We never send SPAM. You can unsubscribe at any moment
Invalid email address
Thanks for subscribing!