BTC managed to find a local bottom at $46.3k, and printed an impressive daily candle close back above $48.1k, starting the weekend on a positive note. BTC bulls will be watching closely to see if the largest cryptocurrency can aim for a retest at the critical $50k level again, as a cluster of shorts remain at $49.5k.

Earlier, more than 2400 BTC longs were liquidated at $46.9k and $46.6k, flushing out a large chunk of leverage on derivative exchanges. The bitcoin price managed to find support just above the critical 200-day moving average and right on top of the 21-week moving average.

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Chart by TradingView

Third Largest BTC Whale is Back

Notably, the third-largest whale wallet we have been tracking accumulated another 592 BTC in a span of two days during the near-term correction. This has been the largest purchase this whale entity has made in two months.

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Chart by Bitinfocharts

Keeping in mind the whale entity has sold 7500 BTC between $37k to $48k, which was likely to break even or realize a small profit on blocks of Bitcoin accumulated at these prices. Before re-accumulating, the whale entity still held 93.5% of its total BTC holdings, signaling a net long position.

This is still quite a small purchase, considering the whale entity had sold 7500 BTC last month. There are still hundreds of millions of dollars that can be deployed. The question is – when and at what price?

Wyckoff Accumulation Phase D Continues

Looking at the market structure, the near-term pullback to $46.3k should not concern the bulls. Bitcoin appears to be close to finishing Phase D in Wyckoff Accumulation, a technical consolidation pattern known to exhaust supply on the market, leading to a significant breakout higher.

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Chart by TradingView

As we reported, the near-term pullback found support at the green zone of support between $48.1k to $46k, which is exactly what the bulls were anticipating. Now that BTC has spent some time consolidating between $47k to $50k, a level with moderate levels of UTXO Realized Price Distribution, it appears supply in this range is gradually being exhausted.

Where is Bitcoin Pricing Heading Next

If BTC can start pushing higher and retest the $50k mark, the probability of breaking out higher will increase, especially if the supply has been exhausted and we see another round of short liquidations. This will be ideal to have BTC exit Phase D and enter Phase E (according to the model), where price enters a “Mark Up” period.

Looking ahead to the weekly close, BTC appears to be starting the weekend on a positive note. BTC needs to hold the current price range and ideally make a weekly close at the highs, in order to validate further the largest technical buy signal, which flashed two weeks ago.

The August monthly close is also coming up next week, where Bitcoin is expected to print a second monthly close higher, something long-term investors will be watching closely. Overall, the bulls protected key support at $46k and are attempting to stage a retest of $50k. The bulls have regained near-term control, but it remains to be seen if $50k can be reclaimed.

The post Bitcoin Price Analysis: BTC Reclaims Critical Level, Is $50k Retest Imminent? appeared first on https://cryptoscoop.news

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