Bitcoin above $28K – Why that’s more than a possibility
- Bitcoin’s price increased by more than 2% in the last seven days
- Open interest also rose, increasing the chances of a continued uptrend
Bitcoin’s [BTC] price, after crossing $28,000, once again sank below that mark. At press time, it was trading marginally lower than $28,000. However, the latest data pointed out the possibility of BTC’s price showing high volatility in the coming days.
Bitcoin’s weekly chart is green
CoinMarketCap’s data revealed that after several weeks of sideways movement, BTC’s weekly chart registered gains. The coin’s price had increased by more than 2% in the last seven days.
At the time of writing, it was trading at $27,994.06 with a market capitalization of over $542 billion. In addition to that, Glassnode recently posted a tweet that suggested BTC’s price volatility could increase further in the coming days.
With prices tight, and the volatility spring coiled, the #Bitcoin market looks increasingly ready to move out of the current equilibrium. As Long-Term Holder spending ticks marginally higher, we present a series of on-chain tools to help navigate the volatile road ahead.… pic.twitter.com/GsHqUZFfiO
— glassnode (@glassnode) May 29, 2023
As per the tweet, the BTC market looked increasingly ready to move out of its current equilibrium. BTC’s balance on all exchanges was negative, suggesting that investors were buying BTC.
Therefore, the chances of BTC initiating its new bull rally soon stood high. Not only that, but BTC’s total number of receiving addresses also reached a one-month high, which looked bullish.
Previous 1-month high of 33,750.351 was observed on 04 May 2023
— glassnode alerts (@glassnodealerts) May 30, 2023
Should investors expect another pump?
A look at BTC’s daily chart gave a positive notion, as most market indicators were in the bulls’ favor. For example, the Exponential Moving Average (EMA) Ribbon displayed a bullish crossover.
The Moving Average Convergence Divergence (MACD) also showed that the bulls were ahead of the bears in the market. BTC’s Relative Strength Index (RSI) registered an uptick and was heading further up from the neutral zone. The Money Flow Index (MFI) also followed the same trend and went up.
In addition to that, BTC’s Chaikin Money Flow (CMF) also increased, further suggesting that BTC’s price can increase in the coming days. However, the Bollinger Bands showed that BTC was in a less volatile zone, which can be concerning.
Metrics favored the position of the king coin
As per CryptoQuant, Bitcoin’s exchange reserve was decreasing, indicating that the coin was not under selling pressure. Active addresses were also high, which in general, could be taken as a positive signal. Moreover, BTC’s binary CDD was green. This indicated that long-term holders’ movements in the last seven days were lower than the average.
Is your portfolio green? Check the Bitcoin Profit Calculator
Furthermore, BTC’s open interest was on the rise. Considering BTC’s positive weekly price action, an increase in open interest would mean that the price trend might continue for longer. Additionally, BTC’s funding rate was also high, reflecting its demand in the derivatives market.