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Posted:
- Bitcoin managed to stay above $26,000 for a week.
- Most data were bullish, but some indicators suggested otherwise.
Bitcoin [BTC] has managed to stay above the critical level of $26,000 for a week. But the king of cryptos has failed to break the $27,000 resistance level, which it fell back below after a few spikes in the past seven days.
Read Bitcoins [BTC] Price prediction 2023-24
While this was happening, an interesting development was taking place. Bitcoin’s correlation with the US Dollar Index has reached a notable milestone of zero. Should investors view this update with a bullish view, or is BTC waiting for another price correction?
Bitcoin is cutting ties with the US dollar
This was evident from the latest data BTCThe country’s correlation index with the US dollar has just reached zero. The metric tracks the linear dependence between the prices or values of two given commodities or assets.
So this latest development means that the performance of the US dollar will have no effect on how the king of crypto performs in the near future or until the index changes again.
Bitcoin’s correlation with the US Dollar Index has reached a notable milestone: zero. Interestingly, there is currently virtually no correlation with the major indices. As Bitcoin charts its own course, the question arises: is this a bullish or bearish signal?
Discover more… pic.twitter.com/M5IzB6nux6— IntoTheBlock (@intotheblock) September 21, 2023
While this looked positive, things could also get nasty for BTC. Therefore, a look at BTC’s statistics could help us better understand whether this development was bullish or bearish.
The NVT signal is an important metric that uses a 90-day moving average of daily transaction volume in the denominator. According to the latest tweet from Glassnode Alerts, BTC’s NVT signal just hit a six-month high of 1,529,771. Historically, whenever the benchmark rose, the price of BTC followed.
📈 #Bitcoin $BTC NVT signal (7d MA) just hit a six-month high of 1,529,771
The previous six-month high of 1,529,351 was observed on March 24, 2023
View statistics:https://t.co/NIjFezJMgN pic.twitter.com/WnqHIg4UJS
— Glassnode Alerts (@glassnodealerts) September 21, 2023
A closer look at BTC’s on-chain performance also revealed many other bullish indicators. For example, BTCThe country’s exchange rate fell, meaning the currency was not under selling pressure.
The aSORP was green, indicating that the market was in a fear phase. Furthermore, Bitcoin’s binary CDD revealed that long-term holders’ movements over the past seven days were lower than average.
Source: CryptoQuant
Are Bitcoin Bulls Here Yet?
Thanks to the aforementioned bullish metrics, BTC managed to stay above the $26,000 mark. At the time of writing, Bitcoin was trade at $26,650.84 with a market cap of over $519 billion.
Is your portfolio green? look at the BTC profit calculator
While the numbers were bullish, a look at BTC’s daily chart suggested that investors can expect a few more slow-moving days. This seemed likely because both BTCThe Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) followed a sideways path.
Nevertheless, the MACD showed a clear bullish advantage in the market, which could soon trigger a bull rally.
Source: TradingView