Bitcoin bulls are back!
Riding high on the failed assassination on Donald Trump, the queen of cryptocurrencies has gone over $60,000 for the first time in weeks. In an earlier analysis, Cryptopolitan stated that breaching the $60k level would confirm a proper bullish reversal. And it has!
Bitcoin’s price crossing the 20-day EMA and approaching the 50-day EMA shows strong bullish sentiment. The SAR indicator, set at $60,514.50, is slightly above the current price.
Source: TradingView
If Bitcoin continues its upward trend and crosses this SAR value, it would signal a strong buy, reinforcing the bullish outlook. The Ichimoku Cloud, with parameters (9, 26, 52, 26), shows a mix of bullish and bearish signals.
The price has recently moved above the cloud, which typically indicates a bullish trend. The conversion line and base line are moving closer, and a crossover here would be what solidifies the bullish reversal.
The MACD shows a value of 348.78, with the MACD line crossing above the signal line, which is currently at -1,597.82. The histogram bars are also positive, supporting the bulls.
The Stochastic RSI, with parameters (3, 3, 14, 14), shows a value of 91.18, with the signal line at 78.12. This high value indicates that Bitcoin is in the overbought territory, suggesting that a short-term pullback might occur.
However, in strong bullish trends, assets can remain overbought for extended periods. Bitcoin’s on-chain signals are also mostly bullish. And the bulls and bears are matching numbers.
Source: IntoTheBlock
86% of Bitcoin holders are currently in profit. Its social volume and dominance have spiked over the past five days. BTC is dominating conversations on social media.
Source: Santiment
In the derivatives market, traders have switched up their strategies completely. First, the volume of Bitcoin derivatives has seen an increase of 49.98%, reaching $43.08 billion.
The open interest has also risen by 4.57% to $31.12 billion. An increase in open interest typically means there is new money entering the market, thanks to the bullish sentiment.
Source: Coinglass
Despite this, the options open interest has seen a modest increase of 2.18%. This means that while fewer new options contracts are being traded, existing positions are still being held or rolled over.
The long/short ratio over the past 24 hours is slightly above 1 at 1.0178, indicating a slight bias towards long positions. This means that traders are generally optimistic about Bitcoin’s price increasing.
Notably, the Binance BTC/USDT long/short ratio for accounts is higher at 1.2153, and even higher for top trader accounts and positions. Here, we see a more pronounced bullish sentiment among more experienced or higher-volume traders.