Journalist
Posted:
- Bitcoin managed to stay above the $26,000 mark for a week.
- Most metrics were bullish, but a few indicators suggested otherwise.
Bitcoin [BTC] has managed to remain above the critical $26,000 mark for a week now. But the king of cryptos has failed to breach the $27,000 resistance level it dropped back under after spiking a few times in the last seven days.
Read Bitcoin’s [BTC] Price Prediction 2023-24
While this happened, an interesting development took place. Bitcoin’s correlation with the US Dollar Index has hit a remarkable milestone of zero. Should investors look at this update with a bullish notion, or is BTC awaiting another price correction?
Bitcoin breaks ties with the US dollar
The latest data revealed that BTC’s correlation index with the US dollar just reached zero. The metric keeps track of the linear dependence between the prices or values of any two given commodities or assets.
Thus, this latest development means that the US dollar’s performance will have no effect on how the king of crypto performs in the near future or until the index changes again.
Bitcoin’s correlation with the US Dollar Index has hit a remarkable milestone—zero. Interestingly, there is currently almost no correlation with any of the major indices. As Bitcoin charts its own course, the question arises: is this a bullish or bearish signal?
Explore More… pic.twitter.com/M5IzB6nux6— IntoTheBlock (@intotheblock) September 21, 2023
Though this looked positive, things could also turn nasty for BTC. Therefore, a look at BTC’s metrics could help us better understand whether this development was bullish or bearish.
The NVT Signal is a key metric that uses a 90-day moving average of the daily transaction volume in the denominator. As per Glassnode Alerts’ latest tweet, BTC’s NVT Signal just reached a 6-month high of 1,529.771. Historically, whenever the metric rose, BTC’s price followed.
📈 #Bitcoin $BTC NVT Signal (7d MA) just reached a 6-month high of 1,529.771
Previous 6-month high of 1,529.351 was observed on 24 March 2023
View metric:https://t.co/NIjFezJMgN pic.twitter.com/WnqHIg4UJS
— glassnode alerts (@glassnodealerts) September 21, 2023
A closer look at BTC’s on-chain performance revealed quite a few other bullish indicators as well. For example, BTC’s exchange rate was declining, meaning that the coin was not under selling pressure.
Its aSORP was green, suggesting that the market was in a fear phase. Additionally, Bitcoin’s binary CDD revealed that the long-term holders’ movements in the last seven days were lower than average.
Source: CryptoQuant
Are Bitcoin bulls already here?
Thanks to the aforementioned bullish metrics, BTC managed to stay above the $26,000 mark. At the time of writing, Bitcoin was trading at $26,650.84 with a market capitalization of more than $519 billion.
Is your portfolio green? Check out the BTC Profit Calculator
Though the metrics were bullish, a look at BTC’s daily chart suggested that investors can expect a few more slow-moving days. This seemed likely as both BTC’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) took a sideways path.
Nonetheless, the MACD displayed a clear bullish edge in the market, which could initiate a bull rally soon.
Source: TradingView
