Bitcoin Showing Signs of 'Short-Term Fatigue' Near $50K Ahead of Possible Continuation

Low levels of daily trading volume persist as bitcoin struggles to edge higher while short positions build.

Aug 17, 2021 at 6:45 a.m. UTC
Updated Sep 14, 2021 at 1:40 p.m. UTC

Bitcoin failed to break $50,000 during weekend trading and is beginning to flag signs of profit-taking in the short term.

The world's largest crypto by market cap is down 2.5% over a 24-hour period and is currently changing hands for around $45,892, CoinDesk data shows.

Still, bitcoin is up 56% in year-to-date returns courtesy of a strong showing by bullish traders throughout the first half of August, when prices rose from $38,000 on Aug. 4 to around $48,190 on Saturday.

"The price has rebounded strongly now, but this upward move is showing some signs of short-term fatigue," said Simon Peters, market analyst at trading platform eToro. "We could see a small retracement down to lower prices before the prevailing trend reasserts itself."

CoinDesk - Unknown

BTCUSD Daily Chart

Low levels of daily trading volume persist as bitcoin struggles to edge higher while short positions are building, according to Datamish data, pointing toward a return to lower supports near $44,000.

"Even though the trend has flipped bullish, a pullback is to be expected before continuation," said Marcus Sotiriou, sales trader at U.K.-based digital asset brokerage firm GlobalBlock. "This is because there has been declining volume with an increase in price, as well as a bearish divergence in the RSI indicator on the daily time frame."

Other notable cryptos in the top 20 by market capitalization over a 24-hour period are mixed with polkadot, solana and terra posting the highest gains while ether, XRP and stellar have shed the most over the same period.


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