Bitcoin price sinks to $46.7K despite record accumulation and supply shock events

Bitcoin (BTC) saw fresh local lows on Tuesday as limp price action diverged further from bullish sentiment.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin evades bullish continuation

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reversing at $46,700 on Bitstamp after dropping $2,000 in hours.

Part of a multi-day rangebound construction, the dip resulted in a push toward $48,000, with bulls still unable to gather momentum for an attack on $50,000.

For popular trader Crypto Ed, $48,200 was the level to watch for continuation upward.

“Showing some tricky moves, retest failed overnight with that dump,” he commented on the hourly chart.

BTC/USDT annotated 1-hour candle chart (Binance). Source: Crypto Ed/Twitter

The mood among analysts broadly stayed optimistic on the day despite price action lagging any noticeable improvement in market activity.

Some highlighted conspicuous accumulation at current levels, while on-chain metrics such as illiquid supply were also a talking point.

“This wave of Bitcoin supply shock has the most momentum of any in recent history,” William Clemente III, lead insights analyst at Blockware, noted.

Bitcoin illiquid supply relative strength index vs. BTC/USD chart. Source: William Clemente III/Twitter

Ether on the move

On altcoins, Solana (SOL) and Polkadot’s DOT were the standouts in the top 10 cryptocurrencies by market capitalization.

Related: Price analysis 8/30: BTC, ETH, ADA, BNB, XRP, DOGE, SOL, DOT, UNI, LUNA

SOL/USD continued making new highs, gaining 19% on the day to near $120, while DOT/USD added 9.2%.

Ether (ETH) was also on the move, up 5% at the time of writing and above $3,350 in what Cointelegraph contributor Michael van de Poppe described as a “bullish” market.

“Ethereum bouncing from support as well on the $BTC pair. Looking good,” he added.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView