- BTC was up by over 4% in the last 24 hours, along with a rise in volume.
- Market sentiment around BTC looked positive, but a few indicators were bearish.
After making investors wait for quite some time, Bitcoin [BTC] finally registered green on its chart. It was interesting to note that the coin's price gained upward momentum after it slipped below a key supply zone.
Let's dive deep into the blockchain's health to see what helped BTC display this bullish performance.
Bitcoin is rising again!
Bitcoin's charts remained red for several weeks as its price moved sideways. Thankfully, things changed in the recent past as a trend reversal took place.
According to CoinMarketCap, BTC was up by more than 4% in the last 24 hours alone.
At the time of writing, it was trading at $42,942.56 with a market capitalization of $840 billion. A bullish development was that the price hike was accompanied by a rise in BTC's daily trading volume.
Right before the king of cryptos' gained bullish momentum, it slipped below a key supply zone.
Ali, a popular crypto analyst, recently pointed out in a tweet that BTC went below a supply zone ranging from $41,200 to $42,400. He mentioned that this could increase selling pressure on the coin.
However, selling pressure on BTC did not increase. AMBCrypto's analysis of CryptoQuant data revealed that BTC's net deposits on exchanges were low compared to the last seven-day average.
Additionally, BTC's supply on exchange went below its supply outside of exchanges, suggesting a slight increase in buying pressure.
Source: Santiment
AMBCrypto then had a look at Bitcoin's liquidation levels to see at which point it initiated its rebound.
Our analysis found that BTC started to move up after touching a key support level of $40,600. After touching that mark, BTC steadily moved up until it faced resistance at $43,500.
Source: Hyblock Capital
Will this trend last?
Since the price pump gave investors hope for a continued uptick, AMBCrypto then checked the market sentiment around BTC.
We found that Bitcoin's social volume remained high consistently, reflecting its popularity. Additionally, sentiment around BTC also turned bullish, as evident from the improvement in its weighted sentiment graph.
Source: Santiment
Read Bitcoin's [BTC] Price Prediction 2023-24
A look at Bitcoin's daily chart revealed that its MACD displayed the possibility of a bullish crossover in the coming days.
Its Chaikin Money Flow (CMF) also registered an uptick, increasing the chances of a continued price surge. Nonetheless, BTC's Money Flow Index (MFI) remained in the bears' favor as it went down.
Source: TradingView
No comments:
Post a Comment