Real Vision crypto analyst Jamie Coutts said Bitcoin (BTC) is poised to continue rising after a temporary correction.
Former Bloomberg analyst To tell 12,800 followers on social media platform
“Bitcoin broke the flag pattern from the head fake at an all-time high and appears poised to teleport even higher. Blue skies (historically no overhead resistance) accelerates the bull market.”
The analyst said that two key indicators, the funding rate and the relative strength index (RSI), suggest that Bitcoin is poised to soar again.
The funding rate is the fee paid between long and short positions in Bitcoin perpetual futures contracts. RSI is a widely used momentum indicator that aims to determine whether an asset is overbought or oversold.
“This pullback has pushed funding rates back to more 'normal' levels (20% per year) and pushed the RSI back from overbought (RSI regularly becomes overbought in strong uptrends).”
The analyst also notes that long-term holders are selling as Bitcoin hits new all-time highs, but demand for the recently launched spot Bitcoin exchange-traded fund (ETF) could absorb supply. He also said that there is a sex.
“On-chain, it is clear that long-term holders are distributing at the most aggressive pace since November 2020. The extent of ETF demand to absorb this supply will dictate the shape and duration of this bull market. It will have a huge impact.”
Coutts has previously stated that he believes gold will significantly underperform digital assets in the current market cycle.
At the time of writing, Bitcoin was trading at $69,909, declining slightly over the past 24 hours.
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