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Posted:
- BTC is up over 4% in the past 24 hours, along with a surge in volume.
- Market sentiment around BTC looked positive, but a few indicators were bearish.
After keeping investors waiting for a long time, Bitcoin [BTC] finally registered green on the map. It was interesting to note that the price of the coin entered an upward movement after falling below a key supply zone.
Let’s dive deep into the health of the blockchain to see what helped BTC show this bullish performance.
Bitcoin is rising again!
Bitcoin’s charts remained red for several weeks as the price moved sideways. Fortunately, things have changed in the recent past when a trend reversal occurred.
According to CoinMarketCapIn the last 24 hours alone, BTC is up more than 4%.
At the time of writing, it was trading at $42,942.56 with a market cap of $840 billion. A bullish development was that the price increase was accompanied by an increase in BTC’s daily trading volume.
Just before the king of cryptos gained bullish momentum, it slipped below a key supply zone.
Ali, a popular crypto analyst, recently pointed this out in a tweet BTC fell below a supply zone ranging from $41,200 to $42,400. He said this could increase selling pressure on the currency.
#Bitcoin has fallen below a key supply area, ranging from $41,200 to $42,400. In this area there were 1.87 million addresses (730,000). $BTC.
This downturn could prompt these holders to sell, with the aim of limiting losses.
As selling pressure increases, watch for a possible decline… pic.twitter.com/aTX1RWarkb
— Ali (@ali_charts) December 18, 2023
However, the selling pressure on BTC did not increase. AMBCrypto’s analysis of CryptoQuant facts revealed that net deposits of BTC on exchanges were low compared to the average of the past seven days.
Furthermore, the supply of BTC on the exchange fell below the supply outside the exchanges, indicating a slight increase in buying pressure.
Source: Santiment
AMBCrypto then looked at Bitcoin’s liquidation levels to see at what point the recovery began.
Our analysis showed that BTC started to rise after reaching a key support level at USD 40,600. After reaching that point, BTC steadily moved higher until it encountered resistance at $43,500.
Source: Hyblock Capital
Will this trend continue?
As the price pump gave investors hope for a continued rise, AMBCrypto then checked market sentiment BTC.
We found that Bitcoin’s social volume remained consistently high, reflecting its popularity. Moreover, sentiment around BTC also turned bullish, as evidenced by the improvement in the weighted sentiment chart.
Source: Santiment
Read Bitcoins [BTC] Price prediction 2023-24
A look at Bitcoin’s daily chart revealed that the MACD showed the possibility of a bullish crossover in the coming days.
The Chaikin Money Flow (CMF) also recorded an uptick, increasing the likelihood of a sustained price rise. Nevertheless, BTCThe Money Flow Index (MFI) remained in favor of the bears as it fell.
Source: TradingView