- Bitcoin’s foreign exchange reserves fell to 2018 levels.
- Long-term investors had confidence in BTC, but a few indicators were bearish.
Bitcoin [BTC] has regained bullish momentum as it quickly approaches the $60k target. This could be the tip of the iceberg as the coin has the potential to reach new highs soon. Let’s see why that was the case with BTC.
Is a big step likely?
According to CoinMarketCap’s factsThe price of BTC has risen by more than 6% in the past seven days. Also in the last 24 hours, the bullish trend continued, with the price of the king of crypto rising by more than 1%.
At the time of writing, BTC was trading at $59,256.11 with a market cap of over $1.17 trillion.
Meanwhile, Titan of Crypto, a popular crypto analyst, posted a tweet which highlights that BTC was following a past trend. According to the tweet, in recent cycles, BTC has always made new highs after the start of the third parabolic progression phase.
To be precise, such episodes occurred in 2013, 2017 and 2021. At the time of writing, BTC had reached the support level from which it could begin its third advance.
Ttherefore, there were chances that this bull rally would push BTC to an all-time high in the coming months.
Source:
Probability of Bitcoin reaching an ATH in 2024
As there were chances of a massive bull rally, AMBCrypto planned to take a closer look at the state of the king of cryptos.
According to our analysis of CryptoQuant’s factsBitcoin’s exchange rate reserve reached its lowest point in 2018. This clearly indicated that buying pressure on the currency was increasing, which is considered a bullish signal.
Source: CryptoQuant
Apart from that, BTC’s binary CDD was green, meaning that the movement of long-term holders over the past seven days was lower than the average. They have a motive to hold on to their coins.
However, the aSORP looked tricky because it was red. This suggested that more investors were selling at a profit. In the middle of a bull market, this could indicate a market top.
Source: CryptoQuant
Therefore, AMBCrypto planned to look at Bitcoin’s daily chart to better understand whether it could sustain this upward trajectory.
Is your portfolio green? View the BTC profit calculator
The technical indicator MACD indicated that the bulls were trying to overtake the bears.
BTC’s Chaikin Money Flow (CMF) raised hopes for a bullish takeover as it headed north. Nevertheless, the Money Flow Index (MFI) moved sideways, indicating a slow few days ahead.
Source: TradingView
