Key Points
- Bitcoin [BTC] has experienced a significant upswing, with gains of over 11% in the past week.
- The cryptocurrency’s 1-7 day UTXO average crossed above the 7-30 day average, signaling a potential short-term rally.
Bitcoin’s Upward Trajectory
Bitcoin [BTC] has been performing strongly on the charts since hitting a low of $89k a week ago. The cryptocurrency’s value has risen to over $105,000 at the time of writing, marking an increase of over 11% in just a week. The recent gains have sparked optimism within the crypto community, with some speculating about a potential short-term rally.
According to Burak Kesmeci from CryptoQuant, Bitcoin’s 1-7 day UTXO average has crossed above the 7-30 day UTXO average. This crossover signifies that the average cost basis for Bitcoin acquired over the past week is rising, despite recent price hikes. This positive signal indicates that the ongoing price upswing is backed by fresh capital inflows.
Significance of the Golden Cross
The emergence of this golden cross suggests that the markets are bullish in the short term and Bitcoin may be well-positioned for more gains. The last time this crossover occurred, the cryptocurrency rallied by 67% and climbed from $66k to $108k. If history repeats itself, Bitcoin could potentially rally again to new highs on the charts.
The golden cross coincides with Bitcoin gaining momentum on the price charts. Market conditions and metrics suggest that the ongoing uptrend could persist. For instance, Bitcoin’s exchange whale ratio recorded a sharp decline, reflecting bullish sentiment among whales. Additionally, Bitcoin’s funding has remained positive and rising, indicating a higher demand for long positions than shorts.
Bitcoin’s NVT Golden Cross also declined sharply to hit negative territory, suggesting a buying opportunity for investors. If these market conditions continue, Bitcoin could potentially break past the $106k resistance and hit another all-time high in the short term. However, a loss of momentum among short-term investors could lead to a dip in the price.
