In this article, we have analyzed four signs of an increase in the price of Bitcoin. Bitcoin price faces pullback risks due to bearish moves on the chain and challenging technical resistance levels. Bitcoin (BTC) received a significant boost this week as US inflation levels in February were in line with market expectations. On March 14, the BTC/USD pair hit a new 2023 high of $26,550 after the news broke. To learn more about these signs that show the increase in the price of Bitcoin, stay with us on the Pooyanmusic site.
But while macroeconomic conditions are currently in favor of risk-taking buyers, some chain and market indicators point to a possible correction in the short term.
Bitcoin is a decentralized digital currency with limited supply. Bitcoin digital currency network is public and its management is the responsibility of its network users.
Each user in the Bitcoin network has a public key and a private key. The public key is something like the account number and the private key is the account access password. To transfer bitcoins, the sending user sends a certain amount of bitcoins to the address of the receiving user. The receiver’s address is the same as the public key. The sending user signs the transmission using their private key.
Exchange flow data Glassnode recorded the largest inflow to exchanges on March 13 since May 2022. This means more supply on exchanges and potentially higher selling pressure.
The Coin Days Destroyed indicator, which measures the amount of Bitcoin weighted transfers, also showed a small jump, indicating that old hands are moving coins. These indicators may indicate profit booking by long-term holders, which could lead to a correction.
The funding rate for Bitcoin Perpetual Exchanges has now increased with the latest CPI print as well. In other words, more traders are betting on the upside with leveraged positions, increasing the risk of a correction.
The strong price move also registered a significant jump in the Relative Strength Index (RSI), a technical momentum indicator, with a reading above 82. This means that BTC/USD is generally overbought in the near term. Taken.
Bitcoin price is currently forming a broad pattern that shows increased levels of volatility. Both buyers and sellers take the price beyond the support and resistance levels.
Buyers did not show a breakout of their pattern on March 14 and are now facing resistance at $26,700. At the same time, there is a possibility that the price will correct to the bottom of the pattern around $19,500 in the coming days.
Conversely, if the price of Bitcoin breaks above the trend line, the bulls are likely to pile up to push the price towards $30,000. There are potentially favorable signs for the bulls in the BTC options and futures markets that this is happening.
There is still room to run, according to reports, as indices have yet to reach previous peak levels. This article does not contain investment advice. Any investment involves risk.
In fact, the price of Bitcoin (BTC) can refer to the energy cost of maintaining and securing the Bitcoin network through mining or the market value of Bitcoin at a certain time. To receive and view the current prices of Bitcoin and other digital currencies, follow the Pooyanmusic site.