Key Points
- Bitcoin (BTC) has seen a 4.16% surge over the past week, with the market indicating positive sentiments.
- Analysts predict that the bullish trend will continue due to a bullish RSI divergence.
Bitcoin, also known as BTC, has seen a significant increase of 4.16% over the past week. The fundamentals indicate a positive sentiment among investors.
Despite recent lows, the Relative Strength Index (RSI) confirms a bullish trend, indicating a bullish RSI divergence.
Bitcoin’s Momentum
Throughout the month, BTC has experienced strong upward momentum. This is a departure from the typical bearish trend associated with September. In fact, BTC is making higher lows, with a current trading price of $65,530, marking a 10.52% increase on monthly charts.
However, a minor correction occurred in the last 24 hours, with Bitcoin declining by 0.46%. Despite this, crypto analyst Caleb Franzen suggests that the bullish trend will continue.
Market Sentiment and BTC Charts
Franzen argues that the bulls are dominating the market, as the RSI has not formed a bearish divergence on daily charts. This suggests that the price increase is supported by momentum, with no significant sign of a reversal at present.
BTC charts also indicate favorable market conditions. The Exchange whale ratio, for example, has declined from a high of 0.68 to 0.511, suggesting that large holders are transferring their BTC off exchanges into private wallets – a bullish signal.
Furthermore, Bitcoin’s Net Unrealized profit/loss (NUPL) has risen from a low of 0.4 to 0.51 over the past week. As NUPL rises, it indicates that investors are making profits, leading to increased optimism and anticipation of further price gains.
Lastly, Bitcoin’s DyDx exchange funding rate has remained positive over the past week. This suggests that long position holders are paying those taking shorts to hold their position. In such a market situation, investors are more inclined to take long positions, anticipating prices to rise.
In conclusion, Bitcoin is experiencing a strong upward momentum with bulls dominating the market. These conditions suggest that BTC will make further gains on price charts by reclaiming the $66500 resistance level in the short term.
