Bitcoin [BTC] could manifest itself- Bitcoin [BTC] was showing signs of potential bullish momentum, with the Pewell Ratio below 0.4 at the time of writing.
This coincided with the formation of a golden cross on the 2-month chart. These indicators, as well as #blockchain data, show that #Bitcoin is preparing for significant price swings. To assess whether Bitcoin is truly ready to rally, it is necessary to examine the data in more detail.
For example, the Pewell multiple is below 0.4, indicating that bitcoin miners' income is far below the historical average. This was noted by analyst Ali Martinez on the X website (formerly Twitter). Historically, this figure has been associated with a falling bitcoin exchange rate, indicating that it may be undervalued.
As miners earn less, they are less likely to sell. This reduces selling pressure in the market and often precedes a price recovery. How do miners and activity on the blockchain support a bullish version? Despite low miner earnings, activity on the Bitcoin network remains high. The number of active addresses increased by 0.93% to 24,000 in the last 8.24 hours, indicating a more engaged network.
This increase in activity, coupled with the fact that miners are likely to hold coins rather than sell them, sets the stage for supply constraints and higher prices.
Miners holding coins while online activity increases often reduce supply. This can lead to potential price increases as demand remains flat or increases.
On the 2-month chart, bitcoin formed a golden cross when the 50-period moving average exceeded the 200-period moving average. This pattern is a recognized bullish signal, especially on a long time frame. This means that bitcoin could enter a sustained uptrend on the chart.
In addition, the Relative Strength Index (RSI) at 51.05 indicates neutral market conditions and provides an opportunity for an upward move.
Bollinger #Band also seems to be narrowing, with bitcoin near the lower boundary of 57,758.15.
Read us at: Compass Investments
