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Bitcoin Price Holds Steady at $21K: 4 New Bullish Indicators

Summary:
The cryptocurrency rally this month was so robust that traders are looking out for the price bottom. Is the market there yet, or will bears take the prices back down to key optical support at K? Here are four new bullish indicators for the BTC price. Solid MA Crossover in New Bitcoin Addresses 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. That’s a leading bullish indicator for the price of the underlying asset. The SMA crossover event persisted through the Alameda-FTX scandals. It continues now amid the bankruptcy of Digital Currency Group subsidiary Genesis. That signals increased demand for BTC and

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The cryptocurrency rally this month was so robust that traders are looking out for the price bottom. Is the market there yet, or will bears take the prices back down to key optical support at $20K?

Here are four new bullish indicators for the BTC price.

Solid MA Crossover in New Bitcoin Addresses

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. That’s a leading bullish indicator for the price of the underlying asset.

The SMA crossover event persisted through the Alameda-FTX scandals. It continues now amid the bankruptcy of Digital Currency Group subsidiary Genesis.

That signals increased demand for BTC and could be a tailwind for the Bitcoin price if the trend continues.

Bitcoin Whale Addresses Are Hodling

Bitcoin whale addresses are also holding their BTC instead of scooping profits, which is another bullish indicator of the asset’s price. According to data from Glassnode, the amount of BTC addresses with 1,000 to 10,000 Bitcoins has held steady, slightly above 1,900, since the beginning of December.

One Bitcoin whale address even just moved $58M worth of BTC off Binance. That usually signals intent to lock down the holdings for an extended period, limiting the crypto exchange supply and supporting the Bitcoin price.

If whale addresses continue to hold, Bitcoin may not be as overbought as it looks in the recent RSI reading of 78.

Mining Difficulty and Hashrate at ATH

That’s the last thing you might expect with the BTC price as low and uncertain as it has been for a year. What it means is the industry’s MVPs are investing more in the network’s underlying infrastructure.

They do this at great risk to their business model if the Bitcoin price is imperiled by market conditions. For that reason, miners who have been in business consistently hashing for years are considered some of the most intelligent participants in the crypto market.

Four-Year Cycles

Notice the BTC was on the way down halfway through the previous halving events that reduce the new bitcoin supply and instigate market bubbles. The graph and previous cycles in this tweet aren’t the only ones. There were two price bubbles before the most recent two in 2013 and 2009.

These market cycles are actually planned into the Bitcoin price with its four-year halving events to drive demand for the crypto with diminishing new supply at each halving.

Every bubble is followed by a correction because of the rush of over-investment in each upcycle. If these bullish indicators give the right impression, we may be through this most recent Bitcoin business cycle in 2023.

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