Bitcoin’s price is currently showing bullish signals which hint at a future price rise. According to Glassnode data, the current cycle of Bitcoin is still reiterating past patterns, especially those from 2015 to 2018.
The 2015-2018 time period saw the OG-cryptocurrency rise 562%. If this pattern continues, Bitcoin prices might again follow the same path to rise significantly.
The predictions come at a time when Bitcoin prices have broken the $100k barrier and are trading above the level. However the BTC price is currently down 2%, as compared to the same time last day.
Why is Bitcoin Down Right Now?
Bitcoin slumped over 5% on Tuesday, January 21st as the optimism around the Trump Presidency inauguration faded away. Trump’s inauguration has been heralded by cryptocurrency investors as a turning point for the sector.
The president has pledged to enact laws that will encourage cryptocurrency, such as a federal bitcoin hoard and a flexible regulatory framework.
Though Trump is expected to help the cryptocurrency industry, he made no specific policy comments about it during his inauguration on Monday January 20th.
Therefore the lack of any positive cues has dampened the investor sentiments in the market, making Bitcoin take the fall.
Will Bitcoin Price in Future?
Though Bitcoin prices have traded in red after the Trump inauguration ceremony, it is likely that positive cues in the future will give the OG-crypto the much need push it needs.
There are also indications that institutional demand for bitcoin is improving given the rise in demand for Bitcoin ETFs. Bitcoin spot ETF data showed a net inflow of $1.86 billion last week, over six times the $312.8 million inflow the week before, according to Coinglass.
For the price of Bitcoin to maintain its upward trajectory, the ETF inflow must increase in size in the future.
Also Read: Bitcoin Price Smashes New All-Time High As BTC Surges To $108,744, Rally To $110K?
Bitcoin Market Indicators: What Do They Say?
Despite the current slump, the overall sentiment for Bitcoin is bullish. This is indicated by the Fear & Greed Index which is at 76 (Extreme Greed) at present.
Over the past 30 days, Bitcoin has experienced 3.44% price volatility and 16/30 (53%) green days. With 27 technical analysis indicators indicating optimistic signals and one indicating bearish signals, the overall sentiment for the price prognosis of Bitcoin is bullish.
If this bullish view continues, Bitcoin’s 200-day SMA is expected to rise over the course of the next month, alongside the short-term 50-day SMA, which is also expected to ascend.
One well-liked indicator for determining if a cryptocurrency is overbought (above 70) or oversold (below 30) is the Relative Strength Index (RSI) momentum wave. With the RSI rating at 58.94 right now, the Bitcoin market is in a neutral state.
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