Can Bitcoin Sustain the Ongoing Brief Bullish Momentum?

• Bitcoin price hit $61K in the last 24 hours.
• El Salvador holds 5,850 BTC valued at $355.83 million.

The crypto market has briefly recovered from the recent dip, and the global crypto market cap has spiked by 0.75% to $2.15 trillion over the last day. Leading cryptocurrencies have recovered moderately from their support levels. Among them, Bitcoin (BTC) has soared 0.39% within the last 24 hours. 

Bitcoin’s price has fluctuated within a narrow range; recently, the asset climbed to $61,408 from $60,141. However, the rally could not sustain, with the price rebounding to around $60.9K. Crucially, the BTC’s market sentiment remains in the fear zone as the Fear and Greed Index stays at 34. 

At the time of writing, BTC traded at $60,990, and the daily trading volume has dropped by over 26.91% to $25.54 billion, according to CMC data. Over the last 24 hours, according to Coinglass data, Bitcoin has witnessed a liquidation of $14.38 million. 

Notably, Bitcoin exchange inflows have declined since early August. An approximate 194,000 bitcoins were delivered to exchanges in the first week of August. As per the current data, a total of 31,000 BTC were transferred to exchanges from August 20, which is less than 50% as compared to the inflows in the first week of August, which also suggests less selling pressure in the market.

On the other hand, the El Salvador cold wallet has purchased 1 BTC daily since March 16, accumulating a total of 160 BTC. The government’s BTC reserve holds 5,850 BTC, valued at around $355.83 million.

Will BTC Maintain the Ongoing Momentum?

Zooming in over the last month, BTC showcased a downward price momentum resulting in 9.82% decline. The asset fell from a high of $65,885 to a low of $49,842. In the past 7 days, Bitcoin has performed moderately, showing a 4.57% spike. With the modest hike, the week started with the token trading at $58,031, and as days progressed, BTC showed a bullish rally, climbing to $61,562. 

If BTC could step into the upward momentum, the asset’s price might touch its key resistance at $61,572. BTC will likely continue to test the upside resistance if the bullish rally persists. However, if the asset bounces back to the $60K mark, the initial support might be tested at $59,769. 

Meanwhile, Bitcoin’s current short-term 9-day MA at $59,516 stands above the long-term 21-day MA at $59,136. However, the token’s daily relative strength index (RSI) stands at 51.08, indicating neutral sentiment in the market. 

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