Bitcoin [BTC] can witness a further price hike if these factors are checked
- After a short decline, BTC managed to reclaim the $28,000 status.
- Several market indicators and metrics looked bullish; BTC’s RSI was overbought.
For a short period, Bitcoin [BTC] witnessed a decline in price, which pushed BTC’s value under $27,000 on 23 March. However, the king of all coins showed a speedy recovery and again managed to reclaim the $28,000 mark.
At press time, BTC was trading at $28,064.56 with a market capitalization of more than $542 billion.
Read Bitcoin’s [BTC] Price Prediction 2023-24
What went wrong?
A recent CryptoQuant analysis pointed out a few factors that might have played a role in BTC’s price decline a few days ago. CRYPTOHELL, an author and analyst at CryptoQuant mentioned in his analysis that a reason behind the decline was the Federal Reserve’s announcement of a 25 basis point increase in interest rates.
However, the good news was that Bitcoin continued to gather momentum, signaling that investors saw it as a safe haven and dependable alternative to the traditional financial system.
Additionally, the announcement of a $300 billion fund injection to rescue cash-strapped banks served as a push to, once again, let Bitcoin regain its value.
Source: CryptoQuant
Metric suggesting further growth
Another CryptoQuant analysis published on 24 March pointed out some metrics, which looked pretty bullish. Oinonen_t, an analyst and author at CryptoQuant, mentioned in his findings about realized price and how BTC investors have been making profits since the year began.
According to the analysis, the exchange stablecoin ratio (ESR) has been acting as a leading indicator for Bitcoin and other digital assets in correlation.
Source: CryptoQuant
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A look at the aforementioned chart suggested that the exchange stablecoin ratio was again approaching new highs. In the existing market structure, the ESR functions as a magnet for the spot price of Bitcoin. Therefore, the possibility arises of BTC once again registering massive gains, which took a backseat during the last seven days.
Nothing can be said with certainty
These analyses, along with a few on-chain metrics, looked bullish for the king coin. BTC’s net deposit on exchanges, for example, was low compared to the seven-day average, indicating less selling pressure.
BTC’s Binance funding rate once again went positive, which reflected its demand in the derivatives market. Another positive signal was BTC’s MVRV Ratio’s recovery, which declined on 22 March.
Source: Santiment
However, CryptoQuant’s data revealed a major bearish signal for BTC. At press time, BTC’s Relative Strength Index (RSI) and stochastic were both in overbought positions, which can increase selling pressure in the coming days.
Source: CryptoQuant
