BTC Price Soars above $45K, While ETH Hits Three-Month High

The BTC price caught a sharp uptrend over the weekend and hit its highest level in months. The BTC/USD pair briefly crossed the $45K mark on Aug 8, hitting intra-trade highs of $45,363 before parrying some gains as investors rushed in to take profits off the table.

The benchmark cryptocurrency has embarked on a remarkable run over the past week that has seen it gain over 20% from its low of $37.3K registered at the beginning of this month.

The BTC bulls have now managed to erase all the losses from the May 19 market crash, as the coin rebounded spectacularly to reclaim the $40K support and extend its uptrend. As of this article’s writing, the king coin is changing hands for $43,997, per the latest data from coinmarketcap. 

The recovery comes amid fears of increasing inflation in the global economy. The US Bureau of Labor Statistics is expected to release its July inflation report next week, with early estimates pointing to a 0.5% increase in inflation.

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Indicators Point to Ongoing Bull Market

On-chain indicators show that BTC might be getting ready to replicate the October 2020 bull market cycle that saw prices jump from $10K to highs above $64K. 

For one, the Fear and Greed Index has reached a score of 69, denoting mounting greed sentiment that the market hasn’t seen since May. Further indications of an upside boom in the short term come from a fractal shared by analyst Will Clemente that shows strong hands are buying BTC from short-term traders.

“Long-term holders now have over 66% of supply, short-term is now down to nearly 20%. Before the main bull run began in October, long-term holder supply reached just over 68%,” Clemente wrote.

That indicator shows that the latest uptrend is primarily driven by demand from investors who plan to hodl coins for the long term. 

The accumulation patterns in the market also indicate that there is strong demand for bitcoin. According to a recent CryptoQuant post, investors are gobbling up the limited supply of coins as exchange inflows continue to dwindle.

On Wednesday of last week, approximately 19.3K BTC were removed from exchanges in a few hours, indicating that it reduced selling pressure. This indicator shows that a multi-month bull run similar to what was seen in October of last year could be ahead.

ETH Extends Upside Rally

Momentum was strong in the ETH market this past week as the top altcoin jumped nearly 30% from its recent low of $2,630 to reach lofty highs of $3,100 on August 8.

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That incredible climb to the upside comes just days after the highly anticipated London hard fork went live. The revolutionary upgrade will resolve the gas fee issues that have crippled the Ethereum network over the past year and add deflationary pressure to the supply of Ether.