Bitcoin continues to slowly push to the upside reaching new yearly highs once again over the weekend, defying the logic of many traders. The bears simply cannot get their claws into the market for the time being, despite severely overbought technicals in what is still a heavy resistance zone.

Bitcoin remains embroiled in political infighting over block size, as has become the norm for Bitcoin over the past few years, and the current state of the shorter term technicals do not instill all that much bullish confidence at this time. Having said that, we think the main reason that the market has not made a more substantial move lower yet is that we are starting to see the economic effects of the second halving event which occurred earlier this year.