However, BTC’s price action has been pretty limited over the past two days. As expected, this has once again increased market skepticism.
Even so, Bitcoin is trading just over $ 54,000 at the time of this writing, with bullish signs of dominance (dominance: 44.6%).
But is the skepticism mentioned above justified? Well, there seems to be strong evidence to the contrary. In fact, there are already strong signals that Bitcoin will hold this level, at least for the foreseeable future.
Why BTC doesn’t go below $ 50,000
When BTC fell in the early hours of October 8, fear flared up again. In the lower time frame, however, Bitcoin has seen its price rise again. In fact, the Relative Strength Index (RSI) has seen an RSI rising almost vertically.
It’s worth noting that every time BTC has seen a sharp surge in RSI in the past month, the price has risen and has been held higher for the following days. Also this time around, with the top coin holding above $ 50,000 since October 5th and bitcoin inflows and outflows continuing to increase, the likelihood that BTC will stay above the center of gravity is still high.
Indicators paint a healthy picture
Bitcoin’s (7d MA) hash rate in particular has exceeded 150 EH / s at the time of writing, its highest level since June 6. This is an indication of a healthier and more resilient Bitcoin network.
On top of that, bitcoins with profit have increased to 94.3%. This shows that more than 16.2% of all coins have returned to profitability since the September low, most recently before the sell-off in October.
In addition, the annual funding for BTC futures contracts has risen back to the level of early September, with open interest also continuing to rise.
Another indicator that appears to be pointing to an increase in BTC price is the Supply Adjusted CDD (SA-CDD).
The Fisher Index confirmed the local low of the SA-CDD, as highlighted by data from Cryptoquants. A local low indicates a return of confidence for long-term owners who would rather hold their money than spend it.
In general, the indicators are favorable to the price increase. In the worst case scenario, if the price of BTC falls, the $ 50,000 level should serve as strong support.