Buyer support and macro headwinds are in Bitcoin’s favor as a giant sell wall is all that stops BTC/USD from reclaiming $50,000.
Bitcoin (BTC) challenged $46,800 on Aug. 11 as a weakening U.S. dollar added to bullish momentum.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting highs of $46,787 on Bitstamp Wednesday, a hair short of the previous day’s peak.
Fresh from voting day on the U.S. infrastructure bill, something which ultimately failed to move the market, Bitcoin showed no signs of bearishness as it returned to the door of major resistance beginning at $47,000.
At the time of writing, the U.S. dollar currency index, which measures the dollar against a basket of 20 trading partner currencies, was reversing gains it had made before the vote.
On the flip side, a continued buying trend by retail and institutional investors is ensuring that the Bitcoin supply has been tightening at levels from $29,000 and upwards.
Another theory suggests that Chinese whales, spooked by the May miner rout, are now reentering the market.
“Earlier this year, BTC enjoyed strong rallies whenever the ~$45200 level held as support,” fellow trader and analyst Rekt Capital added.