Bitcoin has accelerated faster than the market expected. When the top coin rose more than 10% on October 6th, the Hodlers were overjoyed.
However, BTC’s price action has been pretty limited over the past two days. As expected, this has once again aroused skepticism in the market.
Even so, the cryptocurrency is trading just under $ 54,000 at press time, with bullish signs dominating the narrative. In fact, there are already strong signals that Bitcoin will hold this level, at least for the short term.
Why isn’t Bitcoin slipping below $ 50,000?
With the fall of BTC last night, fear flares up again. In the lower time frame, however, Bitcoin has seen its price rise again. In fact, the RSI is bullish.
It’s worth noting that every time BTC saw a sharp surge in RSI in the previous month, the price rose at the same time and held higher highs in the days that followed. Again, this time around, with the top coin holding above $ 50,000 since October 5th, coupled with inflows into the market combined with healthy currency outflows, the likelihood of BTC staying above the middle bar is still high.
Indicators paint a healthy picture
Bitcoin’s (7d MA) hashrate in particular has exceeded 150 EH / s at the time of going to press, its highest level since June 6th. This is an indication of a healthier and more resilient Bitcoin network.
In addition, the profitable Bitcoin companies rose to 94.3%. This shows that over 16.2% of all on-chain businesses have been profitable since the September low, most recently before the May sell-off.
In addition, the annual financing rate for perpetual BTC futures contracts rose again to the level of the beginning of September, with the open interest also increasing further.
According to analyst TXMCtrades, this is an important time for the price of BTC as some traders appear to have taken advantage of long positions, which is leading to a price differential.
Another indicator that Bitcoin is also bullish is the Supply Adjusted CDD (SA-CDD).
Fisher Transform confirmed the local soil of SA-CDD as highlighted by data from Cryptoquants. The local low shows that confidence is returning for long-term owners who prefer Hodl.
Overall, the indicators speak for the bulls. In the worst case scenario, the BTC price will drop and the USD 50,000 level should act as strong support.
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According to Ambcrypto