- BTC is up more than 15% in the past seven days.
- Buying pressure on the coin was high, but the RSI and CMF suggested a trend reversal.
The past few days have Bitcoin [BTC] has come a long way and crossed the $43,000 mark. As previously reported by AMBCrypto, crossing the $42,500 mark was a task for the king of cryptos, which he successfully completed.
Should investors now expect BTC to rise above $50,000 soon?
Bitcoin Crosses a Key Level
If reported by AMBCrypto, BTC liquidation increased near the $42,500 in the recent past. Because of this, it was important for the coin to move above that level to make a new high. Fortunately, Bitcoin has managed to overcome that barrier.
According to CoinMarketCapBTC has risen more than 15% in the past seven days.
At the time of writing, it was trading at $43,990.87 with a market cap of over $860 billion. The possibility of BTC reaching $50,000 seems high based on the price trend.
Ali, a popular crypto analyst, recently posted a tweet highlighting a bullish indicator. According to his tweet, BTC’s realized price surpassed the long-term Holder price.
Typically, this means the market is gaining strength, with newer investors willing to buy at higher prices.
Just in case you need another bullish confirmation signal!#Bitcoin The realized price now exceeds the price realized by the long-term holder, indicating that the #crypto The market is gaining momentum, with newer investors willing to buy at higher prices.
This can be seen as a… pic.twitter.com/emeUZzkS5l
— Ali (@ali_charts) December 6, 2023
He added that
“This can be seen as a bullish sign, showing confidence in BTC’s future performance. The last three times this happened, BTC increased by 12,736%, 4,474% and 819% respectively.”
A closer look at the state of Bitcoin
AMBCrypto then looked at Bitcoin’s on-chain metrics to determine whether the possibility of BTC reaching $50,000 was likely.
Our analysis showed that BTC’s exchange rate reserve fell, meaning buying pressure on the coin was high.
Source: CryptoQuant
Buying sentiment among US investors was also high as the Coinbase premium was green.
Moreover, things in the derivatives are mArket also looked optimistic. BTC’s funding rate was high, indicating that futures investors were actively buying BTC at its higher price.
The fact that buying sentiment in the derivatives market was high was also reflected in the taker-buy-sell ratio, which was green.
Source: CryptoQuant
Read Bitcoins [BTC] Price prediction 2023-24
Although the above figures seem optimistic, BTC‘s daily chart revealed a different story. According to AMBCrypto’s analysis, BTC’s Relative Strength Index (RSI) was in the overbought zone, which could increase selling pressure.
The Chaikin Money Flow (CMF) also registered a decline, raising the possibility of a price correction in the following days.
Source: TradingView