Bitcoin edging towards $43k with anticipation of extended rally
Bitcoin (BTC) experienced a surge in bullish momentum after hitting a local low of approximately $40,500 on December 18th. A key indicator indicates that further bullish momentum may be on the horizon.
As of the time of writing, BTC has risen by 4.3% in the past 24 hours and is currently trading at $42,930. The cryptocurrency’s market capitalization currently exceeds $840 billion, with a daily trading volume of $26 billion.
Market intelligence platform Santiment has provided data showing that Bitcoin’s Relative Strength Index (RSI) has turned bullish and is hovering around the 50 mark. In order for BTC to surpass the $45,000 zone, its RSI must remain below 65.
In addition to the positive momentum, whale activity in the Bitcoin market has also increased significantly. According to Santiment, the number of whale transactions involving at least $100,000 worth of BTC has experienced a 114% surge in the past 24 hours, rising from 6,153 to 13,153 unique transactions in a single day.
Bitcoin’s total open interest (OI) has also seen a slight increase, rising from $7.07 billion to $7.31 billion, according to Santiment.
Data indicates that Bitcoin’s Binance funding rate suggests a slight dominance of long-position holders, currently standing at 0.015%. However, the exact amounts of long and short positions are still unclear.
Despite the positive indicators, a crypto analyst known as Crypto Banter on YouTube has raised concerns about a potential larger Bitcoin dump. The analyst believes that the market appears unsustainable due to high leverage rates, the overhyping of memecoins, and airdrops.
However, the potential approval of Bitcoin ETFs in the United States could signal a bullish sign, as trillion-dollar companies are expected to enter the industry.
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