An analyst at X thinkbitcoin bulls may be in luck in the coming months after a key indicator printed a buy signal for the first time in nearly a decade. While noting a bullish crossover on the golden moment indicator on the 2-month chart, the analyst said the signal is flashing green again after almost nine years.
To further cement this outlook, the supertrend indicator, which has historically preceded all major bitcoin uptrends, is also bullish.
Although the analyst may be optimistic about the world's most valuable currency, the asset remains consolidated. Technically, reading the formation on the daily chart, the coin is slowly losing the momentum of the uptrend. This week, bitcoin failed to build on the spike from late last week to break above $72,000 in a continuation of the buying trend.
On the daily chart, bitcoin is trading above the 20-day moving average. However, prices have been moving horizontally below $72,000. Despite this, traders are hopeful.
Whether the bulls pull back and push the coin to new highs above $74,000 will depend on many other factors.
A key influencer on price and sentiment remains bitcoin exchange-traded funds (ETFs) and their flow trend. Since their launch, nine of the ten bitcoin spot ETFs have accumulated more than 500,000 btc, or about 2.5% of the total supply.
When Grayscale's btc holding is taken into account, all spot bitcoin ETF issuers in the United States control 830,000 btc. Together, this figure translates to approximately 4% of the total supply.
Of note, after last week's slowdown, capital inflows continued throughout this week, pushing their holdings even higher – a net positive for the price and, most importantly, for sentiment. of investors. As of March 28, Lookonchain data sample that 21Shares led the charge, adding 2,924 btc.
Despite the general calm in bitcoin prices, the increase in demand for these derivative products indicates growing interest among institutional and retail investors.
It remains to be seen how prices react heading into April, an important month. In less than four weeks, the network will halve miner rewards from 6.25 btc to 3.125 btc, making the coin scarce. If the current level of demand is maintained, btc prices are likely to rise as market forces automatically adjust prices.
Featured image of DALLE, TradingView chart
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