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Bitcoin Climbs Above $48K as This Historical Indicator Flips Bullish

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Fri, 12/31/2021 - 11:41
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Tomiwabold Olajide
This historical indicator turns bullish as Bitcoin soars beyond $48K
Bitcoin Climbs Above $48K as This Historical Indicator Flips Bullish
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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.

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.

TradingView
BTC/USD Daily Chart, Source: TradingView

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.

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.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.