With Bitcoin locked in at 38,000 $ after a record high of over 40,000 $ and falling, attention is focused on whether Bitcoin can rally beyond that border.
According to Cointelegraph on the 5th (local time), Bitcoin hit 38,000 $ that day for the first time in about 20 days, except for a short spike last week due to the so-called '' Elon Musk effect ''.
However, contrary to market expectations that it will rise above $ 38,000, Bitcoin was pushed to an average of 37,000 $ and continued to move sideways.
Some analysts have noted that Bitcoin has a cup and handle pattern attached to it because it rises from the bottom of the current chart to a smoother curve than V and then rises like a handle on a cup.
They predicted that an increase to 42,000 $ would be possible again, given indicators such as a neutral relative strength index (RSI), a decrease in the outflow of miner bitcoins, a decrease in foreign exchange inflows and an accumulation of whales.
First of all, Bitcoin's RSI is currently around 50, which indicates a neutral level. If the RSI is above 75, it is considered overbought, and if it is below 30, it is considered oversold. However, maintaining a neutral RSI level is interpreted as suggesting upside potential.
Further, miners are seen as a key source of seller pressure in the bitcoin market. When miners start selling their assets on exchanges, they put a serious burden on the short-term price trend.
According to the latest data from Cryptoquant, the mining position index (MPI), which reflects selling pressure from miners, is in a downtrend, indicating low pressure from miners.
The decline in bitcoin inflows from cryptocurrency exchanges and the increase in the number of bitcoins leaving the exchange also support the upward trend in prices.
Investors with large assets tend to choose to withdraw bitcoins from exchanges and store them in their personal wallets for security reasons if they are not going to sell bitcoins at this time.
In response, Glassnode explained that the number of individual addresses with 10,000 BTC or more has skyrocketed this year and more than 200 whale addresses have been created, which could be attributed to institutional investors entering a new market.
Bitcoin is trading at $ 37,623, up 1.5% by the week's close, according to data from CoinMarketCap.
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