Can The Bitcoin Price Continue To Rise In The Short-Term? Market Update
April 13 2023 - 7:05AM
NEWSBTC
After the rapid rise above $30,000, the Bitcoin price is currently
taking a break and hovering around the round number. In the medium
term, Bitcoin looks bullish, but what about the short term? Can BTC
continue to rise or is a correction looming? Axel Adler Jr. has
published an analysis of Bitcoin’s on-chain data on this matter. In
a series of tweets, Adler writes that the BTC inflow/outflow ratio
on the 7-day moving average (MA7) is currently in positive
territory, meaning that BTC inflows to exchanges are exceeding
outflows. Adler concludes from this that investors may be preparing
to sell BTC. However, he says that this value should be interpreted
with caution, as it does not always correlate with future price
changes. Nevertheless, the interpretation is confirmed by the BTC
Netflow 7-day Simple Moving Average (SMA 7), which is also in the
red zone. On the other hand, bullish signals are sent by the
Bitcoin Net Taker Volume MA7, which is positive and indicates that
the buying volume exceeds the selling volume. This could indicate
increased demand and a short-term rise in the BTC price, the
analyst said. Related Reading: Bitcoin And Inflation: What’s Next
For BTC After CPI Rates Came In Lower Than Expected? Also
supporting short-term price growth is the Futures Sentiment Index,
which is based on average open interest and average funding rate.
Currently, the index is rising, suggesting growth potential. Thus,
Adler concludes, “Mixed BTC market situation!” Will Bitcoin Bulls
Or Bears Win In The Short-Term? However, on-chain analyst James V.
Straten has discovered another bullish signal. Via Twitter, the
analyst shared the chart below and stated: Interesting developments
from #Bitcoin whales. They have started accumulating again, while
all other cohorts slow down accumulation. Whales buy value. $30k
the new floor? In addition, according to on-chain data provider
Santiment, social metrics are showing a bullish signal as the crowd
is still skeptical of the rally. “Traders are beginning to show
signs of FUD. Historically, this is a good sign for patient bulls,
as markets typically move the opposite direction of the crowd’s
expectation,” Santiment states. Technical analyst Michaël van de
Poppe also believes that Bitcoin can continue to rise. As long as
the BTC price stays above $28,600 or $27,800, the analyst expects
that the markets will not decline too much. On the lower time
frame, van de Poppe sees $29,300 as a good entry opportunity. The
analyst gives the price range between $32,400 and $33,000 as a
continuation target. Related Reading: Yield Curve Reaches Historic
Low, What It Means For Bitcoin Meanwhile, Bitcoin pioneer Scott
Melker has his eye on BTC dominance. According to him, there is
currently a clear case for altcoins to outperform. Melker shared
the chart below and explained that dominance has been in this range
for years. Currently, it is at the upper edge, which is why he
expects the rally to shift from Bitcoin to altcoins in a base
scenario if the RSI is overbought and reaches the top. We are the
top of the range with overbought RSI (again a bit of a meme) and
bearish divergence. Dominance should drop here unless we see a
MAJOR breakout and Bitcoin crushes everything. At press time, the
BTC price was still hovering around $30,000, trading at $30,223.
Featured image from iStock, chart from TradingView.com
Mina (COIN:MINAUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Mina (COIN:MINAUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024