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Assessing Bitcoin’s [BTC] chances of a bullish comeback after…

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Assessing Bitcoin’s [BTC] chances of a bullish comeback after…

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Bitcoin’s [BTC] 7-day performance has left the cryptocurrency with an uptick of 1.78% on the charts. In fact, at press time, the crypto was priced at $20,900. What this suggested is that while BTC has been on the up lately, it has struggled to build on its recent price appreciation. Needless to say, there’s still the looming risk of the crypto falling below $20k again. Ergo, the question – Can BTC bulls finally retain some semblance of control?

Here’s AMBCrypto’s Price Prediction for Bitcoin for 2023-2024

An analyst’s take

CryptQuant analyst TariqDabil recently pointed out that BTC token transaction count has been showing signs of significant accumulation. According to him, the indication is that Bitcoin has been switching from weak-hand holders to holders who have strong cover. This exchange implied that a sustenance of the switch is a long-term bullish sign for Bitcoin.

Interestingly, the one-week mean token transfer reading of 11.54 could be interpreted as being in agreement with this opinion.

Bitcoin token transfer

Source: CryptoQuant

Additionally, TariqDabil opined that the derivatives market might also be contributing to its position. According to the revelations, the derivatives market Coin Days Destroyed (CDD) inflows spiked more than usual over the last few days. 

Glassnode’s data revealed that the Bitcoin CDD was 4.63 million. This implied that an impressive number of coins have been used for transactions since the fall in August and September. Hence, short-term investors have the opportunity of a likely price increase.

Bitcoin coin days destroyed

Source: Glassnode

In other parts of the derivatives market, the Futures funding rate has revived. Recollect that Bitcoin traders had opted against a massive involvement in the Futures market. However, Glassnode revealed that these traders have gotten back into the market as the Futures perpetual funding rate across all exchanges was at 0.003%.

At this rate, it seems to be obvious that there is an enormous amount of Open Interest. Also, opting for long positions might be favorable over going short.

Bitcoin futures funding rate

Source: Glassnode

Will BTC remain in upbeat spirits?

Furthermore, it seemed that BTC’s chances of reclaiming the bullish momentum had the support of other metrics. According to Santiment, Bitcoin’s exchange inflow was 2,642. This value meant that fewer investors were willing to sell, compared to the reading of 8,672 recorded on 3 November. So, it is less likely that there would be high selling pressure that could draw down BTC’s price.

On a different note, the one-day circulation has not been able to match up to the exchange energy. With its value at 118,000 at press time, investors might need to do more per coin circulation to be assured of a bullish comeback. Despite the fall, ergo, Bitcoin is well-positioned to withstand any antics of sellers and maintain its green status quo.

Bitcoin circulating supply

Source: Santiment


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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