Key Points
Bitcoin (BTC), the leading cryptocurrency, showed a bullish trend in the past week. Its value increased by over 10%. In the last 24 hours alone, the price of Bitcoin rose by over 2%.
At the time of writing, Bitcoin was trading at $57,141.35. Its market capitalization exceeded $1.12 trillion. According to a recent tweet from IntoTheBlock, 95% of Bitcoin investors were profitable due to the recent uptrend.
This profitability surge increased the likelihood of holdings being liquidated. To verify this assumption, an analysis of Bitcoin’s metrics was performed.
Analyzing Bitcoin’s Metrics
CryptoQuant’s data analysis revealed a decline in Bitcoin’s exchange reserve. This suggested that the selling pressure was relatively low. The Coinbase premium was also in the green, indicating a dominant buying sentiment among US investors.
The likelihood of a Bitcoin downtrend due to high sell pressure seemed improbable based on recent data. This suggests a higher probability of Bitcoin continuing its bullish trend. The MVRV Z score of Bitcoin scored +2 for the first time in this bull cycle, a score typically seen during bull rallies.
Despite this, Philip Swift, the founder of LookintoBitcoin, indicated that this cycle is far from overheating. To understand the possibility of a continued upward price movement, Bitcoin’s daily chart was analyzed. The analysis showed that Bitcoin’s MACD displayed a bullish crossover.
This implies that the bull rally could continue for a longer period. However, Bitcoin’s Relative Strength Index (RSI) was in the overbought zone. The Chaikin Money Flow (CMF) also showed a slight downtick, indicating a potential short-term price correction.
