Bitcoin's Price Hops on a Rollercoaster Ride
By Anthony Burr | TH3FUS3 Managing Editor
September 12, 2024 07:20 AM
Reading time: 1 minute, 40 seconds
TL;DR Bitcoin's price has been on a rollercoaster, recently slipping above the $56k mark despite a 3% drop in the last month. Analysts point to a bullish divergence and reduced exchange reserves as positive signs. However, the fear and greed index suggests caution.
Bitcoin bears continued to control the last month as Bitcoin's [BTC] value dropped by over 3%. However, the coin showed signs of recovery as it slipped above the $56k psychological resistance.
When writing, BTC was trading at $56,632.98 with a market capitalization of over $1.12 trillion.
Bullish Divergence and Exchange Reserve
Meanwhile, JAVON, a famous crypto analyst, posted a tweet revealing a bullish divergence on the king coin's chart. The bullish divergence indicated a possible price increase in the coming days, which could also push BTC towards an all-time high.
Additionally, a CryptoQuant analysis hinted at a price rise. According to the analysis, BTC's exchange reserve was dropping. Simultaneously, stablecoin supply increased, indicating a bullish outlook for Bitcoin.
Market Indicators and Metrics
AMBCrypto checked several market indicators and metrics to see whether they hinted at a price uptick that could push Bitcoin to an ATH. First, we checked the Bitcoin Rainbow Chart.
As per our analysis, BTC's rainbow chart showed that the coin's price was in the 'Basically a Fire Sale' zone. Whenever the indicator hits this level, it suggests that investors should consider buying, as the chances of BTC's price increasing in the coming days are high.
Next, we examined Glassnode's data. As per our analysis of the Pi Cycle Top indicator, BTC was trading well below its possible market bottom, which was $62k.
Therefore, if BTC bulls push hard, it won't be surprising to watch the coin at least touch that mark in the coming days.
Fear and Greed Index
However, Bitcoin's fear and greed index was in the 'greed' position at the time of writing, suggesting that there were chances of a price correction. Therefore, AMBCrypto assessed the coin's daily chart to understand better what to expect.
"BTC's Chaikin Money Flow (CMF) registered a downtick. The coin's Money Flow Index (MFI) also declined similarly."
These indicators suggested that investors might witness BTC's price drop. However, the MACD displayed a bullish advantage in the market, hinting at a price rise in the coming days.
