Bitcoin above $28K — Why that’s more than a possibility

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  • Bitcoin’s price increased by more than 2% in the last sev­en days
  • Open inter­est also rose, increas­ing the chances of a con­tin­ued uptrend 

Bitcoin’s [BTC] price, after cross­ing $28,000, once again sank below that mark. At press time, it was trad­ing mar­gin­al­ly low­er than $28,000. How­ev­er, the lat­est data point­ed out the pos­si­bil­i­ty of BTC’s price show­ing high volatil­i­ty in the com­ing days. 

Bitcoin’s weekly chart is green

CoinMarketCap’s data revealed that after sev­er­al weeks of side­ways move­ment, BTC’s week­ly chart reg­is­tered gains. The coin’s price had increased by more than 2% in the last sev­en days. 

At the time of writ­ing, it was trad­ing at $27,994.06 with a mar­ket cap­i­tal­iza­tion of over $542 bil­lion. In addi­tion to that, Glassnode recent­ly post­ed a tweet that sug­gest­ed BTC’s price volatil­i­ty could increase fur­ther in the com­ing days. 

As per the tweet, the BTC mar­ket looked increas­ing­ly ready to move out of its cur­rent equi­lib­ri­um. BTC’s bal­ance on all exchanges was neg­a­tive, sug­gest­ing that investors were buy­ing BTC. 

There­fore, the chances of BTC ini­ti­at­ing its new bull ral­ly soon stood high. Not only that, but BTC’s total num­ber of receiv­ing address­es also reached a one-month high, which looked bullish. 

Should investors expect another pump?

A look at BTC’s dai­ly chart gave a pos­i­tive notion, as most mar­ket indi­ca­tors were in the bulls’ favor. For exam­ple, the Expo­nen­tial Mov­ing Aver­age (EMA) Rib­bon dis­played a bull­ish crossover. 

The Mov­ing Aver­age Con­ver­gence Diver­gence (MACD) also showed that the bulls were ahead of the bears in the mar­ket. BTC’s Rel­a­tive Strength Index (RSI) reg­is­tered an uptick and was head­ing fur­ther up from the neu­tral zone. The Mon­ey Flow Index (MFI) also fol­lowed the same trend and went up. 

Source: Trad­ingView

In addi­tion to that, BTC’s Chaikin Mon­ey Flow (CMF) also increased, fur­ther sug­gest­ing that BTC’s price can increase in the com­ing days. How­ev­er, the Bollinger Bands showed that BTC was in a less volatile zone, which can be concerning. 

Metrics favored the position of the king coin

As per Cryp­to­Quant, Bitcoin’s exchange reserve was decreas­ing, indi­cat­ing that the coin was not under sell­ing pres­sure. Active address­es were also high, which in gen­er­al, could be tak­en as a pos­i­tive sig­nal. More­over, BTC’s bina­ry CDD was green. This indi­cat­ed that long-term hold­ers’ move­ments in the last sev­en days were low­er than the average.


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Fur­ther­more, BTC’s open inter­est was on the rise. Con­sid­er­ing BTC’s pos­i­tive week­ly price action, an increase in open inter­est would mean that the price trend might con­tin­ue for longer. Addi­tion­al­ly, BTC’s fund­ing rate was also high, reflect­ing its demand in the deriv­a­tives market. 

Source: Coin­glass



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