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The Bitcoin price was trading at $69,446b with a bullish bias as of 3:30 am EST on May 23.
Although the big crypto was fighting to reclaim the key level at $70,000, BTC remains bullish in the longer timeframes. It is still up 83% over the last six months and 65% so far in 2024.
Accompanying this performance by Bitcoin is decreasing balance on exchanges, suggesting that the investors are holding on to their coins in anticipation of future price increase.
Data from on-chain metrics provider CryptoQuant reveals that Bitcoins balance on exchanges has decreased by 20% over the last year, from 2.3 million BTC in June to the current value of 1.93 million BTC.
This shows increasing investor confidence in the flagship cryptocurrency.
Additional data from Alternative.me, a platform that tracks sentiments and emotions around cryptocurrencies reveals that the Crypto Fear and Greed Index is in the “extreme greed” zone at 76, up from last week’s and April’’s “greed” at 70 and 71 respectively.
This means that the market is rising as more people seek to get in for fear of missing out (FOMO).
If this continues, the price of BTC may continue rising into price discovery.
The Bitcoin price action had formed an ascending parallel channel on the daily chart as shown below. The price was sitting on immediate support provided by the lower boundary of the channel at $69,000.
To sustain the uptrend, the bulls have to keep the price above this level with the next level to watch being the middle boundary of the rising channel at $72,000 and the March 14 all-time high at $73,835.
Above that, the price may rise toward the technical target of the ascending channel at $75,000. Such a move would represent an 8% uptick from the current price.
Supporting this positive outlook for BTC was the positive RSI. The price strength at 60 suggested that the bulls were still in control.
Conversely, a daily candlestick close below the lower boundary of the rising channel at $69,000 would spell doom for Bitcoin price. The next logical move would be toward the $65,000 psychological level and later the major support level at $60,600.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
