• Bitcoin price is currently holding steady at around $21K despite an overbought RSI and another crypto bankruptcy.
• There are, however, some bullish indicators forming that suggest the cryptocurrency rally may continue.
• On-chain intelligence and insights firm Glassnode has spotted a bullish technical signal in Bitcoin addresses with the 30-day simple moving average (SMA) charting above the 200-day SMA since the beginning of November.
The past month has seen a surge in activity in the cryptocurrency markets, with Bitcoin price rising to levels close to the much-anticipated $21K mark. Despite an overbought RSI and another crypto bankruptcy, the BTC price has held steady, leading traders to look out for the price bottom. However, some bullish indicators are beginning to form which suggest that the current rally may continue.
On-chain intelligence and insights firm Glassnode has spotted a bullish technical signal in Bitcoin addresses. The 30-day simple moving average (SMA) has charted above the 200-day SMA since the beginning of November, indicating that the rally could be sustained. This is a leading bullish indicator that suggests a further surge in Bitcoin prices.
In addition, the sentiment among cryptocurrency traders and investors remains strong. Several prominent investors have expressed optimism about the long-term prospects of Bitcoin and other digital currencies. For example, billionaire investor and founder of Galaxy Digital, Mike Novogratz, has predicted that Bitcoin could reach as high as $100,000 by the end of 2021.
Finally, the institutional adoption of Bitcoin and other cryptocurrencies has been increasing, signaling the entry of large players into the market. For example, PayPal recently launched a new service that enables its customers to buy, sell, and hold cryptocurrencies, while investment giant BlackRock has also announced its entry into the crypto space.
These bullish indicators have led some analysts to predict that the current rally could be sustained for the long-term. However, it is important to keep in mind that the cryptocurrency market is still highly volatile and prices could still dip in the short-term. Therefore, it is important to exercise caution when investing in cryptocurrencies.