Bitcoin Climbs Above $48K As This Historical Indicator Flips Bullish
According to on-chain analytics firm Santiment, Bitcoin is seeing a trend of rising address activity in the past few days. It notes that bullishness in the DAA/price ratio indicator historically correlates with price increases. According to on-chain analytics, Dec. 28 saw the greatest address activity in four weeks.
📈 With #Bitcoin continuing its $46k to $48k range, we're seeing a trend of rising address activity. Dec. 28th marked the highest address activity in 4 weeks, and these high spikes in DAA/price ratio historically correlate with price rises. https://t.co/HQK1tfoDG6 pic.twitter.com/U8CPwTDz2W— Santiment (@santimentfeed) December 30, 2021
Bitcoin climbed to intraday highs of $48,548 on Dec. 31 at the time of writing. The technical outlook depicts the improvement in the price after Bitcoin marked three straight days of losses this week. The daily RSI is sharply rising toward the neutral 50 as the price recovers.
Market sentiment also reflects this: According to the Crypto Fear & Greed Index, traders are less fearful, and the index currently sits at 28, a shift from yesterday's ''extreme fear'' to ''fear.''
As U.Today reported, Bitcoin traders suggest the potential for a green first week on the crypto market in January.
Alex Krüger, a crypto trader and economist, noted in a recent tweet that for the past four years straight, Bitcoin (BTC) enjoyed positive returns in the first week of January, ranging from 7% to 36% between 2018 and 2021.
Most cryptocurrencies were adding value at press time, with Terra LUNA, Aave and Cosmos outperforming in the last 24 hours.
Mixed signals trail Bitcoin market
Mixed signals continue to trail the Bitcoin market, as the majority of participants seem to remain undecided about the near-term outlook for Bitcoin (BTC). Traders seem to be awaiting a significant move in either direction before planning their next entry point. The $53K mark remains a significant barrier on the upside.
📉 #Bitcoin $BTC Futures Volume (24h) just reached a 1-month low of $98,391,904 on #KrakenPrevious 1-month low of $98,492,499 was observed on 12 December 2021View metric:https://t.co/1gh7hbl7TO pic.twitter.com/D7qryyMZ5k— glassnode alerts (@glassnodealerts) December 31, 2021
According to Glassnode, Bitcoin is seeing low-volume trading on centralized exchanges as the year drags to a close.
On the positive side, Bitcoin shows a negative NetFlow of -$658.3 million in the last 24 hours. When NetFlow is negative, it indicates that outflows are surpassing inflows. In this instance, investors withdraw more BTC than they deposit, and this might be bullish for the lead cryptocurrency.Source