Bitcoin (BTC) is approaching its second attack on pivotal resistance this week as bulls remain firmly in the driver's seat.

Afterwards a mixed weekend that saw both a run on $48,000 and a major rejection at that level, Bitcoin is already back, having fabricated up all of its losses.

With weather broadly favorable for continued strength, it may simply be a matter of time earlier the next impulse motion reshapes the BTC/USD spot market.

Cointelegraph suggests five factors worth taking into account when assessing where Bitcoin might be headed in the coming days.

Bitcoin returns to claiming $48,000

It was a rags-to-riches story for Bitcoin this weekend.

Sat began on a high after BTC/USD jumped in a higher place $47,000, a zone that immediately borders a big resistance wall, which then far remains in identify.

Thereafter, a failed assail on that zone concluded in a abrupt reversal, with Bitcoin dropping to local lows of $45,500 before recovering.

That recovery, which took place through Sunday, ultimately brought Bitcoin back to where it had begun the weekend'due south activity, and Monday's picture show provides a house sense of déja-vù for traders.

"Bitcoin needs to regain $46.5K," Cointelegraph correspondent Michaël van de Poppe warned earlier the latest run-upwards was confirmed.

"If that happens, and then I'm assuming the highs will exist tested again. If not, $44K next."
BTC/USD one-hour candle chart (Bitstamp). Source: TradingView

With the prospect of a rematch at present on the cards, sellers are nonetheless steadfast at $48,000. A look at buy and sell levels on major substitution Binance shows the extent of the resistance, with back up at $45,000 now also substantial.

BTC/USD buy and sell levels (Binance) as of Aug. 16. Source: Textile Indicators/Twitter

Fellow trader and analyst Rekt Capital, meanwhile, considered an ascending triangle structure for BTC/USD, with Sunday providing a test of its upper purlieus, just not a breakout.

"BTC has formed a new Lower High on this about contempo successful retest endeavour," he tweeted Monday.

"Has $BTC at present transitioned into this current marketplace construction?"
BTC/USD ascending triangle construction. Source: Rekt Capital/Twitter

Hash rate, difficulty signal to the heaven

Some familiar practiced news from a familiar source: Bitcoin network fundamentals are still climbing toward all-time highs.

After the latest automated readjustment on Friday, difficulty saw an increment of 7.three%, completing its best performance since Bitcoin'due south May price sell-off.

Bitcoin difficulty chart. Source: Blockchain.com

Equally Cointelegraph continues to report, mining power is returning to Bitcoin after being forced out of Cathay, while existing operations are adding to their capabilities.

The result is a larger Bitcoin mining hash rate and, with it, more competition for the Bitcoin block subsidy, a process that, in turn, leads to difficulty rise to go on the network in equilibrium. This as well increases network security and underscores miners' long-term commitment to Bitcoin — investment in return for profits.

the hash rate stood at 113 exahashes per 2nd (EH/south) on Monday, now firmly above the 100 EH/s marker and thirty EH/due south above the postal service-May lows. The all-time loftier for the hash rate, which was in situ before the China episode, is 168 EH/south, according to monitoring resource MiningPoolStats.

Dollar celebrates 50 years with a whimper

Favorable headwinds look set to add to Bitcoin'due south strength from the wider macro environment this calendar week.

After a tough cease to the week for the The states dollar, Monday has and so far delivered only a modest reversal. This weekend marked 50 years since the U.S. ended the dollar'southward gold convertibility. Dollar weakness, while not a guarantee of easy returns for BTC, withal remains a useful indicator of crypto market place potential.

At the time of writing, the U.S. dollar currency index (DXY) stood at a 92.6, down from over 93 last week.

U.S. dollar currency index 1-mean solar day candle nautical chart. Source: TradingView

In a market summary, Justin d'Anethan, head of substitution sales at Nasdaq-listed crypto firm EQONEX, reiterated a falling dollar's potential to be a boon for hedge assets such as gold as well.

"One could too observe the dollar falling, supporting risk assets and as well gold, trying to make a comeback," he wrote Monday.

"In the crypto space, you can feel the bullishness as well; investors are a lot richer now than they were last week or the week before that."

D'Anethan was besides hopeful of an boosted macro catalyst from the U.S. government in the form of the contentious infrastructure nib having its crypto tax linguistic communication amended in the most future.

"If a more lenient wording tin can become through, this volition exist very supportive," he added.

Greed hits highest since April

A slight counterpoint to the want for sustained bullish momentum on Bitcoin is market sentiment, which is already flirting with "extremes."

These come in the grade of the Crypto Fear & Greed Index, which over the weekend flashed its highest score in four months.

Leveraging a basket of factors to make up one's mind whether crypto, in general, is oversold or, conversely, due for a sell-off at sure prices, the Index reached 76/100 Sunday, respective to "extreme greed."

By contrast, just last month, information technology measured 10/100 — the polar opposite of today, or "extreme fear."

A potential further attack on $50,000 for Bitcoin could thus serve to upend sentiment once more, increasing the risk of a knee-jerk correction every bit the market heads toward Apr's all-fourth dimension highs.

Crypto Fear & Greed Index as of Aug. xvi. Source: Alternative.me

Altcoins polish as Bitcoin coils

One coin'due south loss is some other coin'southward gain this week — and it looks like altcoins may be the primary beneficiaries of current sentiment.

Related: Top 5 cryptocurrencies to picket this week: BTC, ETC, LUNA, KLAY, AXS

With Bitcoin up around eight% versus a week ago, major altcoins are nonetheless outperforming its gains.

Out of the top 50 cryptocurrencies by marketplace capitalization, many have seen weekly returns in excess of 20%, with Solana (SOL) leading with 60% on Monday.

As Cointelegraph reported, hopes are high that some course of "alt season" can still return this summer, peradventure fuelled by a decentralized finance resurgence.

At 43.7%, Bitcoin's market cap authority is also falling despite its potent performance, opening upwardly the potential for altcoins to pb the manner into Q4.