- Bitcoin recorded a golden cross as the 1-to-7 day UTXO exceeded the 7-to-30 day UTXO average
- The cryptocurrencies are up 11.56% over the past seven days
Since hitting a low of $89,000 a week ago, Bitcoin [BTC] has seen a strong rise on the charts. Since then, the cryptocurrency has even made significant gains, with BTC valued at over 105,000% at the time of writing. This is thanks to gains of more than 11% in the past week alone. Needless to say, the past few days have been very bullish for Bitcoin.
As expected, the latest price pump has the crypto community eyeing more gains, especially in the short term. That could be why some are suggesting a potential short-term rally is underway, citing ultra-short-term investors.
Bitcoin’s ultra-short term remains bullish
According to CryptoQuant’s Burak Kesmeci, Bitcoin’s UTXO 1-7 day average has crossed above the UTXO 7-30 day average.
Source: CryptoQuant
This crossover indicated that the average cost basis for Bitcoin acquired over the past week is rising – a sign of growing interest despite recent price increases.
This positive signal proved that the continued price increase was massively supported by new capital inflows. As such, the surge in the number of short-term investors entering the market means strong demand that reflects the resilience of Bitcoin’s upward momentum. Simply put, BTC sees greater determination among new investors as they enter the market, despite the price movement.
Significantly, with this golden cross emerging, markets appear bullish in the short term and BTC may be well positioned for more gains.
Historically, the last time this crossover occurred, the cryptocurrency rose 67%, rising from $66,000 to $108,000. Therefore, the golden cross hinted at a shift in short-term trends into positive territory – a sign of northward momentum.
If history is anything to go by, we could see Bitcoin soar to new highs on the charts again.
What’s going on in terms of statistics?
Bitcoin’s latest golden cross aligned well with the cryptocurrency gaining some form of momentum on the price charts. However, can it sustain itself?
Well, according to AMBCrypto’s analysis, prevailing market conditions and statistics indicated that the ongoing uptrend will continue for now.
Source: CryptoQuant
For example, Bitcoin’s price-earnings ratio registered a sharp decline.
This fell to a weekly low, reflecting bullish sentiment among whales. Whales keep their assets off the exchanges while continuing to accumulate BTC.
Source: Cryptoquant
Furthermore, we can see this bullishness across all market participants as Bitcoin funding has also remained positive while rising.
In fact, the funding rate rose to 0.0166 – a sign that investors are more optimistic and have greater demand for long positions than for shorts.
Source: Cryptoquant
Finally, Bitcoin’s NVT Golden Cross fell sharply and reached negative territory. This dip could represent a buying opportunity, one that gives investors the opportunity to accumulate BTC at press time rates, as this could be cheap, before the crypto climbs even higher. What this means is that while BTC may be rising, it is not yet very expensive for new entrants to the market.
Therefore, if these market conditions persist, we could see a break past the $106,000 resistance with the crypto reaching a new ATH in the near term. However, if short-term investors lose momentum, the price could fall further.