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Onchain Data Suggests BTC May Get Bullish Soon (Bitcoin Price Analysis)

                                                            Die Volatilität von Bitcoin geht weiter.  Nachdem BTC am Montag unter 46.000 USD gefallen war, konnte sich BTC stark erholen und das Hoch vom Dienstag über 49.3.000 USD markieren, als diese Zeilen geschrieben wurden.

Looking at the following chart, the center line in the Bollinger Band could be both a support line for the rising trends and a resistance serve for the descending trends.

After the bearish divergence was confirmed – as shown in the chart below – the price of Bitcoin fell from its ATHLevel (69,000 USD). The price failed to break that mid-line on December 1st and fell to $ 42.1,000 shortly thereafter. Bitcoin tried to break that line for the second time today. A first bullish sign of reversal can be confirmed above this line at the daily candlestick close.

BTC moves in a descending channel. On the 4 hour timeframe chart below, it hit the upper band of the channel but failed to break it. It appears that Bitcoin is retreating into the marked zone for the time being. According to the confirmed bullish divergence mentioned in yesterday’s analysis, we can expect higher prices in the short term if the pullback above the marked area finds support.

Onchain Data Suggests BTC May Get Bullish Soon (Bitcoin Price Analysis), Crypto Trading News

Onchain analysis

Although Bitcoin posted a new ATH on November 10, 2021, the total number of active addresses is well below the previous highs of Q1-2021. This indicates that there is still little activity on the network. Hence, we need to see new capital inflows from new investors and traders.

Onchain Data Suggests BTC May Get Bullish Soon (Bitcoin Price Analysis), Crypto Trading News

Historically, the RSI of open interest hits the overbought zone when the price hits its high. After that, the price begins a correction phase similar to Open Interest.

As you can see on the graph, we had an overheated futures market with high leverage positions. At the same time, BTC hit a new ATH of around USD 69,000.

Nevertheless, the price was adjusted afterwards and the futures market began to cool down. As a result, many long positions were liquidated during the shakeout.

At the moment we are on a similar level to the last time that BTC-Price started a rally of $ 40,000 in late September. Negative derivatives netflow and the RSI of the open interest indicate that a future market recovery could be initiated. On this basis, the correction phase could end soon, that is we can expect another bullish rally as soon as the sentiment on the futures market turns positive again.

Onchain Data Suggests BTC May Get Bullish Soon (Bitcoin Price Analysis), Crypto Trading News

The above analysis was done by @N__E__D__A and @CryptoVizArt. Onchain data provided exclusively to CryptoPotato by @greatest_trader.


Source: Crypto News Deutsch

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