Bitcoin (BTC) is showing new signs of strength, with a daily rise of 7% due to the strength of BTC price.
BTC price rebounds after snap sell
Data from Cointelegraph Markets Pro and TradingView suggests that upward momentum may continue as on-chain indicators reset.
Bitcoin “needs to cool off” after reaching $44,000 this month, and conditions are improving after rising to nearly $40,000, according to the analysis.
in post On December 13, Philip Swift, founder of statistics resource Look Into Bitcoin, on
He pointed to the Value Days Destroyed (VDD) multiple indicator, which is the current BTC price multiplied by the number of days the coin will be destroyed, and on December 11 it hit its highest level since May 2021.
“Destroyed Value Days have now reached levels seen in previous Early Bull regional highs as some HODLers took profits,” the commentary reads in part.
VDD seeks to quantify Bitcoin selling activity at specific price points based on how long the newly reactivated supply was previously dormant.
As Cointelegraph reported, the recent sell-off has been driven by short-term holders, or STH, the more speculative segment of the Bitcoin investor base.
See increase in Bitcoin and Ethereum inflows
Meanwhile, looking at the near-term BTC price action, others see the potential for further progress towards key resistance near $50,000.
Related: ‘Take a break’ — Bitcoin price copies 2020 bull market fractal
For analyst Matthew Hyland, this comes in the form of the Relative Strength Index (RSI), which shows the difference in price strength across different time frames of the day.
“BTC close confirmed.” said December 14th X subscribers.
Ali, a popular social media commentator who has seen significant inflows into Bitcoin and the largest altcoin, Ethereum (ETH), is also optimistic.
He pointed out that this mimics the situation at the end of 2020, when BTC/USD first surpassed $20,000 to enter price discovery.
More than $19.7 billion is flowing in. #Bitcoin and #Ethereum today! This is roughly equivalent to the capital inflows previously seen in December 2020. $BTC It skyrocketed from $18,000 to $65,000! pic.twitter.com/pBALVN0C2c
— Ali (@ali_charts) December 14, 2023
“We have a plan. We know where we are going, why we are going, and when we are going. “The rest is just noise.” Fellow reviewer BitQuant Added In the latest series of bullish BTC price predictions.
“Bitcoin should overcome the $42K-$45K channel by the end of next week, with no further strong resistance until $63K.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.