The price of bitcoin (BTC) has risen above $38,000 after being below that level for nearly 21 days, with the exception of Elon Musk’s rally last week. Four key factors coincided with the rebound of the price of BTC above this key level, which could push the price of bitcoin back to $42,000.

These factors include a neutral relative strength index (RSI), a decline in mining exits, a decline in net equity flows into negative territory, and an accumulation of whales.

Accumulation of whales coincides with negative flow in the exchange network

According to the pseudonym of crypto-currency trader Bitcoin Jack, Bitcoin has demonstrated a technical education head and pen.

The technical formation usually indicates an upward trend reversal, which will almost be confirmed if bitcoin follows the short-term breakout.

The trader also pointed to the negative net trade flow, which shows signs of bitcoin’s hoarding phase. Citing data from CryptoQuant, the trader wrote:

Bitcoin looks like a cup with a handle – negative net flow in exchange supports new ATH thesis accumulation around the corner for $ flow in bitcoin exchange. Source: CryptoQuant

4 reasons Bitcoin is about to reclaim $38K, putting all-time highs back in play

A negative net exchange rate flow is an important indicator because it shows that bitcoin is exiting the exchange.

Wealthy investors prefer to withdraw bitcoins from exchanges after amassing them for security and self-preservation reasons. If you move BTC to a wallet that is not linked to private keys, no one but the private key holder has access to it.

Moreover, analysts at Glassnode found that the number of whales holding bitcoins has increased significantly this year. The combination of negative net flow and an increasing number of whales shows that bitcoin accumulation remains high. You wrote:

The number of #Bitcoin whales (entities holding ≥ $1kBTC) has surprisingly increased. More than 200 new whaling organizations have appeared online since the beginning of the year – data that confirms the rise of these organizations.

Bitcoin RSI neutral

Bitcoin’s RSI is back at 50 on many time frames, which is neutral. The RSI is an indicator that measures whether an asset is overbought or oversold.

When bitcoin’s RSI rises above 75, it is considered overbought; when it falls below 30, it is considered oversold.

While bitcoin remains near the overbought zone on the daily and weekly charts at high scale, the RSI is between 45 and 60 on most charts at low scale. This suggests that bitcoin has the potential to grow in the near future.

Slight reductions in flow

Bitcoin miners are one of the main sources of pressure on BTC, as they represent unparalleled selling pressure.

So if miners start selling the BTC they mine on exchanges, that could put a lot of pressure on bitcoin’s price cycle in the short term.

Bitcoin Miners Position Index. Source: CryptoQuant

4 reasons Bitcoin is about to reclaim $38K, putting all-time highs back in play

According to CryptoQuant, the Miners Position Index (MPI) has fallen. This means, at least for the foreseeable future, that pressure from miners should be low.

frequently asked questions

What is the reason for Bitcoin’s growth?

The halving is one of the main factors affecting the price of bitcoin. Since there are only 21 million bitcoins, the coin’s turnover in the market is falling as the reward drops. And as more and more people become aware of the scarcity of the commodity, demand increases, leading to higher prices.

When did bitcoin peak?

The world’s largest cryptocurrency by market value jumped to a record high of $49,951 Monday night, inches away from the $50,000 mark, according to specialist website CoinDesk.

ethereum is dropping,why is eth dropping today,ethereum on exchanges,cointelegraph price analysis,why is ethereum falling,bitcoin cash all-time high,Feedback,Privacy settings,How Search works,bitcoin news,btc, eth, xrp

You May Also Like

Bitcoin rally slows as whales transfer wealth to retail investors

Analytics provider Glassnode reports that current intra-chain indicators suggest that the bitcoin…

Famed Norwegian Billionaire Investor Capitulates After Seeing Another Embrace Bitcoin – Bitcoin News

Norwegian billionaire Oystein Wandering Spethalin, who had called bitcoin nonsense, reportedly capitulated…

Euler.Tools, a Unique Platform to Explore and Discover Blockchain Tools – Press release Bitcoin News

– Press release PRESS RELEASE. Jorge de los Santos is behind Euler.Tools,…

VC Backed Billion-Dollar Stablecoin Project Fei Protocol Falls Below the USD Peg – Bitcoin News

A new decentralized (final) financial project called Fei ran into trouble this…