Bitcoin (BTC) reached its highest level in more than two months, with just a few days remaining before the July inflation written report.

The meridian cryptocurrency climbed 1.65% to $45,363 on Sun, standing the upside momentum that had already seen it jump 21.62% from its low of $37,300 on Thursday.

BTC/USD daily nautical chart. Source: TradingView

Momentum was potent among Bitcoin rivals as well. Ether (ETH), the second-largest crypto by market capitalization, increased 29.78% from its low of $2,630 on Tuesday, crossing $3,100 on Sunday. Its gains came after Ethereum's London hard fork went alive on Thursday, which should add deflationary pressure to the supply of ETH.

July inflation report, on-concatenation

On Midweek, the United States Bureau of Labor Statistics will release July's inflation report, with markets forecasting a 0.5% fasten. The projections appear after the consumer price index (CPI) jumped to 5.4% year-over-year in June to log its biggest increment in thirteen years.

Bitcoin bulls take responded positively to the recent aggrandizement reports. They finer guarded the cryptocurrency confronting falling below $30,000 after the May nineteen crash. Meanwhile, their recent efforts to push the prices to a higher place $40,000 — eventually leading into a slow upside break above $45,000 — indicate strong demand for Bitcoin, which appears to be breaking out of its summertime slump.

Lex Moskovski, chief investment officer of Moskovski Capital letter, highlighted a Glassnode chart that showed dramatic spikes in entities entering the Bitcoin network, matching the growth with the rising BTC/USD rates.

Bitcoin entities cyberspace growth chart. Source: Glassnode

"Corporeality of new Bitcoin entities continues to hit all-time high," Moskovski tweeted.

Additionally, on-concatenation analyst Willy Woo said the ongoing Bitcoin momentum should push its prices above $50,000, citing a supply-and-need imbalance in the market. He said that all investor cohorts were buying Bitcoin, which led to a supply stupor.

Related: Hither'due south what traders look at present that Ethereum price is over $3,000

Woo referred to a chart he posted on July 15 when Bitcoin'south market corrected lower after having peaked at $36,675. The graph, every bit shown below, highlighted events of Bitcoin'south liquidity daze beyond all the exchanges and their relation to the prices.

Woo explained:

"Fundamentals exercise non predict short term price, but given enough time cost discovery reverts to fundamentals. Exact value is $53.2k today, with a standard departure band between $39.6k - $66.8k (68.5% confidence)."

Bearish fractal

Withal, the latest Bitcoin climb does conduct risks of becoming a dead cat bounce, based on previous top-to-bottom Fibonacci retracement fractals.

Bitcoin Fib retracement from local tops to 200-week EMA. Source: TradingView

After setting upwards record highs, Bitcoin tends to right toward its 200-week exponential moving average (200-week EMA; the xanthous wave), where it eventually bottoms out to pursue another bullish wheel.

In the by 2 events, the BTC/USD exchange charge per unit posted fake recovery rallies after testing the 23.vi Fib line as support. Those upside moves failed short of turning into big bullish momentum after facing resistance at college Fib levels.

Related: 3 reasons why Ethereum is unlikely to flip Bitcoin any time soon

For instance, in 2022, Bitcoin rebounded by more than l% after bouncing off from its 23.6 Fib line near $7,357. Just the cryptocurrency faced extreme selling pressure near its 61.8 Fib line of $10,613. Somewhen, it resumed its downtrend and crashed to as low every bit $three,858 in March 2022.

If the fractal repeats, Bitcoin could face farthermost resistance at the 61.viii Fib level at $46,792 and correct lower to retest its 200-solar day EMA, which currently sits below $xx,000.

Contained market place commentator and trader Keith Wareing suggested that an imminent bullish crossover between Bitcoin's ii weekly moving averages is hinting at the showtime of a multi-month bull run. Dubbed as the moving average convergence divergence (MACD), the indicator was instrumental in predicting the 2022 bull run.

Bitcoin prices and MACD crossovers in recent history. Source: TradingView

"The weekly MACD is due to cross bullish on Bitcoin after this night'south close," opined Wareing to his Twitter followers, with the toll of Bitcoin so far maintaining above $44,500 at the fourth dimension of writing.

The views and opinions expressed hither are solely those of the author and practise not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.