Bitcoin obtained its peak level in more than two months, with only a few days left before July’s upcoming inflation report.
The leading digital currency went up 1.65 per cent to 45,363 on Sunday, maintaining the upwards momentum that had already witnessed it jump by 21.62 per cent from its record low of 37,300 USD the previous Thursday.
The upwards momentum was powerful among the leading cryptocurrency’s rivals, too. Ethereum, the second-most prominent digital currency by market cap, went up 29.78 per cent from its low of 2,630 USD on Tuesday, whereby surpassing 3,100 USD on Sunday. Its profits came after Ethereum’s London hard fork update was rolled out on Thursday, which must add deflationary pressure to the Ethereum supply.
On Wednesday, the US Bureau of Labor Statistics is set to reveal July’s inflation report, along with markets predicting a spike of 0.5 per cent. The projections show up after the CPI (or consumer price index) went up by 5.4 per cent year-over-year in the month of June to record its greatest increase in thirteen years.
Bitcoin bulls have also responded favourably to the recently revealed inflation reports. They efficiently guarded the digital currency against plummeting below 30K following the market crash on the 19th of May. In the meantime, their recently made efforts to send the prices above 40K – ultimately leading into an upside break above 45K – denote strong demand for the world’s leading currency, which seems to be making its way out of its recent summer slump.
Chief investment officer of Moskovski Capital Lex Moskovski emphasized a Glassnode chart displaying dramatic spikes in entities making it into the Bitcoin network. This matched the growth with the soaring BTC-USD rates.
Moskovski took to Twitter to point out that the new Bitcoin entities proceed to reach a peak high.
Moreover, Willy Woo, an on-chain analyst, stated that the ongoing Bitcoin impetus should be pushing its prices well above 50K USD, mentioning an imbalance of supply and demand in the industry. He added that all investor companions were investing in Bitcoin, which resulted in a supply shock.
Woo alluded to a chart he had posted on the 15th of July when Bitcoin’s market had corrected lower after peaking at 36,675 USD.
After reaching peak highs, Bitcoin has a tendency to correct toward its two-hundred-week exponential moving average (or 200-week EMA), where it ultimately bottoms out in order to follow yet another bullish cycle.