Real Vision crypto analyst Jamie Coutts says that Bitcoin (BTC) is poised to continue rallying after a temporary correction.
The former Bloomberg analyst tells his 12,800 followers on the social media platform X that Bitcoin appears to have broken up a bearish flag pattern and is gearing up for a bigger move to the upside.
“Bitcoin seems ready to teleport higher as it breaks the flag pattern from the head fake at the all-time highs. Blue sky (no historical overhead resistance) is an accelerant for bull markets.”
The analyst says two key indicators, the funding rates and the Relative Strength Index (RSI), suggest Bitcoin is ready to soar again.
The funding rates are fees paid between long and short positions in Bitcoin’s perpetual futures contracts. The RSI is a widely used momentum indicator that aims to determine if an asset is overbought or oversold.
“The pullback has allowed funding rates to recede back to something more ‘normal’ (20% annually) and the RSI backed off from overbought (RSIs are regularly overbought in strong uptrends).”
The analyst also says that long-term holders are selling as Bitcoin reaches new all-time highs, but demand from the recently launched spot Bitcoin exchange-traded funds (ETFs) may absorb the supply.
“On-chain it’s evident that long-term holders are distributing at the most aggressive pace since November 2020. The extent of ETF demand to absorb this supply will have a large bearing on the shape and duration of this bull market.”
Coutts previously said he thinks that gold will vastly underperform digital assets in the current market cycle.
Bitcoin is trading for $69,909 at time of writing, down slightly in the last 24 hours.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: DALLE3
