• Bitcoin price is currently holding steady at $21K despite an overbought RSI and another crypto bankruptcy.
• There are however some bullish indicators forming, such as a solid MA crossover in new Bitcoin addresses.
• Other bullish indicators include a declining BTC sell pressure, strong buying inflows, and a rally in Bitcoin options volume.
The cryptocurrency market has seen a robust rally this month, with Bitcoin price rising from below $19K to above $21K. Despite the overbought Relative Strength Index (RSI) and another crypto bankruptcy, BTC has held steady at the $21K level. While traders are looking out for the price bottom, there are some bullish indicators forming that point to further upside potential.
On-chain intelligence and insights firm Glassnode has spotted a bullish technical signal in Bitcoin addresses. The 30-day simple moving average (SMA) has charted above the 200-day SMA since the beginning of November. This indicates that the number of new Bitcoin addresses is increasing, which is a bullish sign for prices.
Another bullish indicator is the declining sell pressure on Bitcoin. According to data from CryptoQuant, the BTC sell pressure is at its lowest level since the summer of 2019. This is a sign that investors are not eager to exit their positions, which could lead to further price appreciation.
In addition, there have been strong buying inflows into exchanges recently. This indicates that investors are continuing to accumulate Bitcoin and may be preparing for further upside.
Finally, the rally in Bitcoin options volume is another bullish signal. Bitcoin options open interest has reached a new all-time high of $8.4 billion, indicating that traders are increasingly looking to buy BTC at higher prices.
These four bullish indicators suggest that Bitcoin is likely to continue higher in the coming weeks. While the market could still see some corrections, these indicators indicate that the long-term outlook for the cryptocurrency remains strong.