- Buying pressure on BTC was high as exchange reserves dropped.
- A few market indicators looked bullish on BTC.
Bitcoin [BTC] investors recently had a setback as the king of cryptos’ bull rally halted. However, they should not lose confidence in BTC as a bullish pattern formed on the coin’s price chart, hinting at another rally in the coming days.
Patience is the key
The entire crypto space was filled with excitement as the king of crypto crossed the much-speculated $50,000 mark. But the trend was short-lived as the token price plummeted below $49,000.
Nonetheless, the king of cryptos quickly moved above $49k. According to CoinMarketCap, at the time of writing, BTC was trading at $49,432.19 with a market capitalization of over $970 billion.
In fact, Ali, a popular crypto analyst, pointed out an interesting development, which hinted at another bull rally.
#Bitcoin appears to form an ascending triangle on the lower time frames. This technical formation suggests $BTC is poised for a 1.60% in the short-term.
Watch out for the $50,200 resistance and the $50,000 support!
If you’re planning to join me in this trade, go to @coinexcom,… pic.twitter.com/Jtb8Eedbtq
— Ali (@ali_charts) February 13, 2024
As per the tweet, a bullish ascending triangle pattern formed on the coin’s price chart. Since BTC was moving inside that pattern, short-term price declines are common.
But, if the larger picture is considered, the possibility of BTC turning $50k as its new support level is high. Investors at large also seemed pretty confident in BTC as they kept increasing their accumulation.
AMBCrypto’s look at CryptoQuant’s data clearly pointed out that BTC’s exchange reserve continued to decline over the last few days. A drop in the metric means that investors were actively buying BTC.
Source: CryptoQuant
Bitcoin’s Coinbase premium was green, meaning that buying sentiment was dominant among US investors.
Additionally, CryptoQuant’s data revealed that BTC’s Binary CDD was also green. This suggested that long-term holders’ movements in the last 7 days were lower than average, indicating their willingness to hold their assets.
Source: CryptoQuant
Is a bull rally inevitable?
To find further hints for a bull rally, AMBCrypto took a look at Glassnode’s data. We found that Bitcoin’s Network Value to Transactions (NVT) Ratio registered a decline.
Typically, a drop in the metric suggests that an asset is undervalued, meaning that the possibility of a price uptrend is high.
Source: Glassnode
To check whether an uptrend is actually around the corner, we then took a look at Bitcoin’s daily chart. The MACD displayed a massive bullish advantage in the market.
Its Chaikin Money Flow (CMF) also went up, indicating that BTC’s price might increase soon.
Source: TradingView
Read Bitcoin’s [BTC] Price Prediction 2024-25
However, nothing can be said with utmost certainty as the Relative Strength Index (RSI) was in the overbought zone, which can exert selling pressure on BTC.
Additionally, its fear and greed index also had a reading of 74 at press time. Whenever the metric reaches the “greed zone,” it increases the chances of a price correction.
Source: Alternative.me
