The Bitcoin price has finally returned to the level where further downside risk is minimal. The flagship asset appears to conclude the week on a bullish note after strengthening around $36k throughout the week. Especially, the Hash rate, number of long–term holders, exchange reserves, and market trends are likely to flip the bearish divergence amidst the $2 billion worth options expiry set on January 28th.
Bitcoin Price Thrives To Return $40,000!
The flagship asset is currently down by 48%, and on a bearish trap for 79 days. While it was under a bearish rule after the May market crash, it has faced a huge build-up of sell-off pressure for over 100 days. In addition, the asset has undergone a 55% correction.
However, the bear session appears to have reached the bottom and bulls are likely to return to the market. In addition, there are certain metrics pointing out to a bullish close by the weekend. If retailers continue to accumulate in the next 24-hours, catalysts such as a number of long-term holders, exchange reserves, and market trends would propel BTC prices beyond $40k.
The reports from Glassnode confirm that the balance on exchanges reached two-year lows of $3,508,233. Further, it is also noted that options traders have brought the downside protection aggressively for the month of January as put open interest outstripped call open interest by 30%.
On the other hand, the Bitcoin hash rate has risen to a new all-time high. Usually, price action follows the hash rate and hence weekend would remain bullish for the flagship asset. If the flagship asset breaks the current local resistance of $36,700, then the above catalysts are likely to propel the price by 10% by the weekend.
Collectively, it’s been a while since the Bitcoin price has not seen any significant gains. As the bearish session is at the end phase, the asset is likely to commence a bull rally eventually. If the above facts hold true then the flagship asset would commence with a bull cycle. Even technical analysis is indicating that bulls need to break the $37.5k resistance level to achieve a weekly close above $40k.
Source: https://coinpedia.org/bitcoin/bitcoin-price-poised-for-upswing-by-the-weekend-amids/