- BTC is up over 4% in the last 24 hours along with an increase in volume.
- Market sentiment around BTC looked positive, but some indicators were bearish.
After keeping investors waiting for quite a while, Bitcoin [BTC] finally entered in the green chart. It was interesting to note that the coin's price gained bullish momentum after slipping below a key supply zone.
Let’s dive deep into the state of the blockchain to see what helped BTC achieve this bullish performance.
Bitcoin is rising again!
Bitcoin's charts remained red for several weeks as the price moved sideways. Fortunately, a trend reversal has occurred in the recent past.
Accordingly CoinMarketCapBTC is up more than 4% in the last 24 hours alone.
At the time of writing, it was trading at $42,942.56 and had a market cap of $840 billion. One positive development was that the price increase was accompanied by an increase in BTC's daily trading volume.
Just before the king of cryptos gained bullish momentum, it slipped below a key supply zone.
Ali, a popular crypto analyst, pointed this out in a recent tweet BTC fell below a supply zone between $41,200 and $42,400. He mentioned that this could increase selling pressure on the coin.
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#Bitcoin has fallen below a key supply zone between $41,200 and $42,400. In this area, 1.87 million addresses had accumulated 730,000 $BTC.
This downturn could prompt these holders to sell to cut losses.
As selling pressure increases, watch for a possible pullback… pic.twitter.com/aTX1RWarkb
— Ali (@ali_charts) December 18, 2023
However, the selling pressure on BTC did not increase. AMBCryptos analysis by CryptoQuant Data revealed that net deposits of BTC on exchanges were low compared to the average of the last seven days.
Additionally, the on-exchange supply of BTC fell below the off-exchange supply, indicating a slight increase in buying pressure.
Source: Santiment
AMBCrypto then took a look at Bitcoin's liquidation levels to see at which point it began its recovery.
Our analysis shows that BTC started rising after reaching a key support level at $40,600. After reaching this mark, BTC rose steadily until it encountered resistance at $43,500.
Source: Hyblock Capital
Will this trend continue?
As the price increase gave investors hope of further upside, AMBCrypto subsequently checked the market sentiment BTC.
We found that Bitcoin's social volume remained consistently high, reflecting its popularity. Additionally, the sentiment around BTC also turned bullish as evident from the improvement in the weighted sentiment chart.
Source: Santiment
To read Bitcoins [BTC] Price prediction 2023-24
A look at Bitcoin's daily chart showed that its MACD indicated the possibility of a bullish crossover in the coming days.
Its Chaikin Money Flow (CMF) also saw an increase, increasing the chances of a sustained price increase. Nonetheless, BTCThe Money Flow Index (MFI) remained in favor of the bears during its decline.
Source: TradingView
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