Bitcoin Investors Stay Hopeful Despite Drop, Bullish Pattern Indicates Potential Rally
Why Bitcoin Investors Shouldn’t Worry if BTC is Below $50,000
Bitcoin investors recently experienced a setback when the crypto king’s bull rally appeared to lose momentum. However, they should not lose faith in BTC as a bullish pattern is emerging on the coin’s price chart, indicating another rally in the coming days.
Patience is Key
The entire crypto space was buzzing when the crypto king surpassed the much-speculated $50,000 mark. But the trend was short-lived as the token price fell below $49,000. Nevertheless, the crypto king quickly moved above 49k. According to CoinMarketCap, BTC stood at $49,432.19 at the time of publication, with a market capitalization of over $970 billion.
Interesting Development on the Price Chart
Ali, a popular crypto analyst, pointed out an interesting development that suggests another bull rally. According to the tweet, a bullish ascending triangle pattern formed on the coin’s price chart. As BTC moves within this pattern, short-term price declines are common. But looking at the bigger picture, the possibility of BTC establishing 50k $ as its new support level is high.
Investors Show Confidence in BTC
Investors appeared to be quite confident in BTC overall, as they continued to increase their accumulation. A look at the data from CryptoQuant clearly showed that BTC reserves on exchanges continued to decline in recent days. A decrease in this metric means that investors were actively buying BTC.
Is a Bull Rally Inevitable?
To find further clues of a bull rally, we looked at the data from Glassnode. We found that Bitcoin’s Network Value to Transactions (NVT) ratio was declining. Typically, a decline in this metric indicates that an asset is undervalued, which increases the possibility of a price rise.
Checking the Upward Trends
To verify whether an upward trend is indeed imminent, we looked at Bitcoin’s daily chart. The MACD showed a massive bullish advantage in the market. The Chaikin Money Flow (CMF) also rose, suggesting that the price of BTC could rise soon.
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Relative Strength Index and Fear and Greed Index
However, nothing can be said with absolute certainty as the Relative Strength Index (RSI) was in the overbought zone, which could exert selling pressure on BTC. Moreover, its Fear and Greed Index also had a reading of 74 at press time. Whenever this metric reaches the “greed zone”, the chance of a price correction increases.
Sources: CoinMarketCap, CryptoQuant, Glassnode, TradingView, Alternative.me
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Price | $98,597.00 |
| 24h % | -0.88 % |
| 7d % | 8.08 % |
| 30d % | 46.87 % |
| 60d % | 55.49 % |
| 1y % | 164.47 % |
| Market Cap | $1,949,446,148,829.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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