The rally in cryptocurrencies this month was so strong that traders are keeping an eye on the price bottom. Is the market there yet, or will the bears push prices back down to key optical support at $20K?
Here are four new bullish indicators for the BTC price.
Solid MA crossover in new Bitcoin directions
On-chain information and intelligence firm Glassnode has detected a bullish technical signal in Bitcoin addresses. The 30-day SMA has been above the 200-day SMA since early November. That is a leading bullish indicator for the price of the underlying asset.
The SMA crossover event persisted through the Alameda-FTX scandals. Continue now in the middle of the Bankruptcy of Digital Currency Group subsidiary, Genesis.
That indicates higher demand for BTC and could be a tailwind for the Bitcoin price if the trend continues.
Bitcoin whale addresses are piling up
Bitcoin whale addresses are also holding their BTC instead of taking profit, which is another bullish indicator of the asset’s price. According to data from Glassnode, the number of BTC addresses with 1,000 to 10,000 Bitcoins has been stable, slightly above 1,900, since the beginning of December.
A Bitcoin whale address even just moved $58 million in BTC from Binance. That usually indicates an intent to lock up holdings for an extended period, limiting crypto exchange supply and supporting Bitcoin’s price.
If the whale directions hold, Bitcoin may not be as overbought as it appears from the recent RSI reading of 78.
Mining Difficulty and Hashrate in ATH
That is the last thing you could expect with the price of BTC as low and uncertain as it has been for a year. What does it mean it’s that industry MVPs are investing more in the underlying infrastructure of the network.
They do this at great risk to their business model if the price of Bitcoin is threatened by market conditions. For that reason, miners who have been in business consistently for years are considered some of the smartest entrants in the crypto market.
four year cycles
$BTC #Bitcoin
Bull market 2015-2017: 1064 days
Bear market 2017-2018: 364 daysBull market 2018-2021: 1064 days
2021-*current* market low: 364 daysDays left to top if we just carbon copy the cycle time frame again: 1001 days pic.twitter.com/KoNZxJRuy5
—HornHairs 🌊 (@CryptoHornHairs) January 12, 2023
Note that BTC was falling to the halving of previous halving events that reduce new bitcoin supply and instigate market bubbles. The chart and previous cycles in this tweet are not the only ones. There were two price bubbles before the two most recent in 2013 and 2009.
These market cycles are actually timed into the price of Bitcoin with its four-year halving events to drive demand for the crypto with new supply dwindling at each halving.
Each bubble is followed by a correction due to the rush of overinvestment in each up cycle. If these bullish indicators give the right impression, we may be in this most recent Bitcoin business cycle in 2023.
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