Bitcoin Shows Signs of Exhaustion as Rally ‘Falters’ Before Next Leg Up

Bitcoin is flashing signs of buyer exhaustion near the $47,000 price tag as bull pressure begins to wane, according to on-chain data and CoinDesk sources. The crypto is currently changing hands for around $45,000 after reaching a 24-hour top of $46,767, CoinDesk data shows. The temporary stay in price might be short-lived, however, as prices begin toying with major psychological resistance near $50,000, according to some.

Bitcoin is up 50% over a three-week period, having broken a long-term moving average on the back of strong institutional and retail demand. Still, the crypto is showing signs of buyer exhaustion as seen by the relative strength index, an indicator used to gauge a given trend.

And while bitcoin’s rally on the back of Ethereum’s ‘London’ Hard Fork has helped drive prices, political tensions in the U.S. and China’s crackdown remain a “significant threat” to the crypto market, Jehan Chu, managing partner at Hong Kong-based crypto investment firm Kenetic Capital, told CoinDesk via WhatsApp on Thursday.

In the immediate short-term, a pullback is likely as demonstrated by the number of active bitcoin addresses beginning to decline once again, according to data by provider Glassnode.

Bitcoin Shows Signs of Exhaustion as Rally ‘Falters’ Before Next Leg Up: Sources, CoinDesk, Aug 12