- Buying pressure on BTC was high as foreign exchange reserves fell.
- A few market indicators seemed bullish on BTC.
Bitcoin [BTC] Investors recently suffered a setback when the king of cryptos’ bull rally stalled. However, they should not lose confidence in BTC as a bullish pattern is emerging on the coin’s price chart, indicating a new rally in the coming days.
Patience is the key
The entire crypto world was filled with excitement when the king of crypto crossed the much-talked-about $50,000 mark. But the trend was short-lived as the token price plummeted below $49,000.
Nevertheless, the king of cryptos quickly rose above $49,000. According to CoinMarketCapAt the time of writing, BTC was trading at $49,432.19 with a market cap of over $970 billion.
Ali, a popular crypto analyst, even pointed out an interesting development, which indicated a new bull rally.
#Bitcoin appears to form an ascending triangle on the lower time frames. This technical formation suggests $BTC is poised for a 1.60% upside in the short term.
Watch out for the $50,200 resistance and the $50,000 support!
If you plan to join me in this trade, please visit @coinexcom,… pic.twitter.com/Jtb8Eedbtq
— Ali (@ali_charts) February 13, 2024
According to the tweet, a bullish ascending triangle pattern formed on the coin’s price chart. Because BTC moved within that pattern, short-term price drops are common.
But if the bigger picture is considered, there is a possibility that BTC will reach $50,000 as the new support level is high. Investors in general also seemed to be quite confident in BTC as they continued to increase their accumulation.
AMBCrypto’s look at CryptoQuant’s facts has clearly pointed out that BTC’s foreign exchange reserve continued to decline in recent days. A decline in the measure means that investors were actively buying BTC.
Source: CryptoQuant
Bitcoin’s Coinbase premium was green, meaning buying sentiment was dominant among US investors.
Furthermore, CryptoQuant’s data revealed that BTC’s binary CDD was also green. This suggested that long-term holders’ moves over the past seven days were lower than average, indicating they are willing to hold on to their assets.
Source: CryptoQuant
Is a bull rally inevitable?
To find further evidence of a bull rally, AMBCrypto looked at Glassnode data. We found that Bitcoin’s Network Value to Transactions (NVT) Ratio registered a decline.
Normally, a decline in the measure indicates that an asset is undervalued, meaning the possibility of a price increase is high.
Source: Glassnode
To check whether an uptrend is actually underway, we next looked at Bitcoin’s daily chart. The MACD showed a huge bullish advantage in the market.
The Chaikin Money Flow (CMF) also rose, indicating that the price of BTC could rise soon.
Source: TradingView
Read Bitcoins [BTC] Price prediction 2024-25
However, nothing can be said with extreme certainty as the Relative Strength Index (RSI) was in the overbought zone, which could put selling pressure on BTC.
Moreover, at the time of writing, the fear and greed index also stood at 74. When the measure reaches the ‘greed zone’, it increases the chances of a price correction.
Source: Alternative.me