Bitcoin has twice failed this week when it tried to break the key psychological resistance of $ 10,000, which brought the price to a low of $ 9,200 on Friday morning. Some are expressing concern that Bitcoin's unprecedented level of $ 10,000 could be a sign that the coin is returning to the downtrend. However, the growing confluence of technical and fundamental factors suggests that Bitcoin is on the rise, which will give the digital currency the opportunity to surpass the all-time high. $ 20,000.
Bitcoin often flashes on-chain signals before previous rally According to data shared by analyst Philip Swift, The Puell Multiple index - calculated by dividing the daily issue value of Bitcoin (in USD) by the 365-day moving average of the same metric on -chain, has just reached an important region.
As can be seen in the chart above, Multiple has recently moved into the green strip area at the bottom of the chart - the area where whenever Multiple reaches, it will witness Bitcoin hitting a macro bottom during 8 years. by. Historically, Multiple has proven to be a fairly accurate indicator of Bitcoin's bottom, for example, when BTC fell to $ 3,700 in mid-March this year, when Bitcoin bottomed at $ 3,150 at the end of the year. In 2018 and before Bitcoin's 2015-2017 rally from hundreds of dollars to $ 20,000, all saw the Multiple falling to the green zone. This historical precedent shows that Bitcoin is very close to the bottom after havling and is about to start a protracted rally.
Blinking chart strong technical sign According to Alex Fiskum, an associate of Alice Capital, the market sentiment of Bitcoin and the positioning of traders are showing this as a "hatred of protest". That said, most investors seem to have been out of the market during this move. Kelvin Koh "SpartanBlack" - partner of The Spartan Group, a crypto investment fund and former partner of Goldman Sachs, echoed this view.
He wrote in a message citing Fiskum's analysis that Bitcoin investors are "still a bit risky," with the options market, the RSI and the "fear and greed" index showing the vast majority of people Market participants are still standing by. These factors show that Bitcoin's upward trend is far from exhausted, which will lead to asset appreciation in the coming months if buyers join. The demand for Bitcoin is increasing In addition to strong technical and on-chain signs, analysts say demand for the leading cryptocurrency is on the rise and will continue to increase in the future. Alex Kruger, an economist who closely monitors the cryptocurrency market, recently emphasized that with legendary macro investor Paul Tudor Jones announcing support for Bitcoin, there is an increasing demand for Bitcoin. This space is "coming":
