Despite an uneventful month for Bitcoin (BTC) price, on-chain metrics suggest that Bitcoin may be gearing for an imminent bull run. Noticeably, the number of Bitcoin held on spot exchanges has been decreasing since the start of the year, according to data from on-chain analytics firms, CryptoQuant, and glassnode.
A depleting reserve of BTC on exchanges is a bullish sign for Bitcoin from a macro perspective. However, some suggest the changing trend may be caused by the growing popularity of DeFi and other liquidity related protocols that have created a demand for tokenized Bitcoin and the liquidity that comes with the asset.
This would still paint a positive picture for Bitcoin as it shows users prefer to receive interest for holding BTC than to take profit. While there is nearly $1 billion worth of Bitcoin on the Ethereum blockchain through WBTC alone, the tokenized version of Bitcoin only started gaining traction in late June 2020.
Moreover, it also seems like the growth of DeFi has been stunted. Token prices have been plummeting and the total value locked in DeFi protocols continues to drop across the sector and also in the tokenized versions of Bitcoin.
The current reduction in interested DeFi participants has led many analysts to infer that a possible cycling of DeFi and altcoin profits to Bitcoin is underway. If so, this suggests that Bitcoin is preparing for another bull run, especially as new participants continue to join the network.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 11,586.61.
The projected lower bound is: 10,171.01.
The projected closing price is: 10,878.81.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 79.6303. This is not an overbought or oversold reading. The last signal was a sell 10 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 54.82. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 63 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 156.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 19 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -1.730 at 10,898.020. Volume was 93% below average (consolidating) and Bollinger Bands were 59% narrower than normal.
Open High Low Close Volume 10,893.530 10,958.000 10,857.410 10,898.020 48,810
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 10,672.06 10,850.00 9,562.64 Volatility: 23 41 57 Volume: 326,560 599,103 579,203
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 14.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.
Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 12 periods.