- The price of Bitcoin is up more than 2% in the past seven days
- Open interest also increased, increasing the likelihood of a sustained uptrend
From Bitcoin [BTC] price, after crossing $28,000, dipped below that mark again. At the time of writing, it was trading just below $28,000. However, the latest data pointed to the possibility of BTC price showing high volatility in the coming days.
Bitcoin’s weekly chart is green
CoinMarketCaps facts revealed that after several weeks of sideways movement, BTC’s weekly chart made gains. The price of the coin had risen by more than 2% in the past seven days.
At the time of writing, it was trading at $27,994.06 with a market cap of over $542 billion. In addition, Glassnode recently posted a tweet suggesting that BTC price volatility could increase further in the coming days.
With prices tight and volatility rolling in, the #Bitcoin market seems more and more ready to get out of the current equilibrium. As spending from long-term holders picks up slightly, we present a range of on-chain tools to help navigate the volatile road ahead.… pic.twitter.com/GsHqUZFfiO
— glassnode (@glassnode) May 29, 2023
According to the tweet, the BTC market seemed increasingly poised to break out of its current equilibrium. The balance of BTC on all exchanges was negative, suggesting that investors bought BTC.
Therefore, the probability of BTC initiating its new bull rally was soon high. Not only that, but the total number of BTC receiving addresses also reached a one-month high, which looked optimistic.
📈 #Bitcoin $BTC The number of receiving addresses (7d MA) just hit a 1-month high of 33,773,077
The previous 1-month high of 33,750.351 was observed on May 4, 2023
View statistics:https://t.co/U2DRirGj7r pic.twitter.com/f7754S6lpj
— glassnode alerts (@glassnodealerts) May 30, 2023
Should investors expect another pump?
A look at BTC’s daily chart gave a positive picture as most market indicators were in favor of the bulls. For example, the Exponential Moving Average (EMA) ribbon showed a bullish crossover.
The Moving Average Convergence Divergence (MACD) also showed that the bulls were ahead of the bears in the market. BTCThe Relative Strength Index (RSI) registered an increase and continued to move up from the neutral zone. The Money Flow Index (MFI) also followed the same trend and rose.
Source: TradingView
In addition, BTC’s Chaikin Money Flow (CMF) also rose, further suggesting that the price of BTC may rise in the coming days. However, the Bollinger Bands showed that BTC was in a less volatile zone, which can be concerning.
Metrics favored the king coin position
From CryptoQuant, Bitcoin’s exchange rate reserve decreased, indicating that the coin was not under selling pressure. Active addresses were also high, which can generally be taken as a positive signal. In addition, BTC’s binary CDD was green. This indicated that long-term shareholder movements over the past seven days were lower than average.
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Further, BTCpublic interest increased. Given BTC’s positive weekly price action, an increase in outstanding interest would mean that the price trend may last longer. In addition, BTC’s funding rate was also high, due to the demand in the derivatives market.
Source: Coinglass
