Bitcoin Rallies to Nine-Month Highs Amid US Banking Crisis
Bitcoin is enjoying a massive surge, hitting nine-month highs on Wednesday and reaching over $26,000 against the USD. This surge comes when the US banking system faces a crisis, with financial stability issues reducing the likelihood of additional monetary tightening. As a result, Bitcoin is becoming appealing to investors.
Last week, BTC hit lows of $19,000, but it has since rallied by over 27%. Bulls vigorously defend long-term levels, including the 200-day moving average and the $19,700 price. The recent resurgence has consolidated the rally and improved key metrics on-chain after last week’s downturn.
In the weekend’s chaos, US regulators introduced a $25 billion bank liquidity bundle to improve balance sheets while protecting depositors. This move acted as a catalyst for BTC, which skyrocketed above $24,000 on Saturday. In addition, introducing this bundle has also reduced the likelihood of additional monetary tightening, further increasing the appeal of BTC.
Bitcoin’s on-chain and technical indicators fully scream health, suggesting that BTC is again on a massive rally. The crypto’s defense of the 20-day moving average has consolidated the rally. Many investors now anticipate that BTC could extend its gains toward the next critical resistance level of around $28,000.
Glassnode, a widely popular on-chain metrics dashboard, has predicted that Bitcoin will likely experience a flashing bullish signal at its critical resistance point. The dashboard examines eight main metrics to determine if BTC will be trading or moving above the pricing model, the level of network usage, if momentum is improving, and if profitability is above the recovering lines.
The dashboard, known as “Recovering from a Bitcoin Fear,” also shows indicators of long-term holders. All the indicators have been green for BTC, with seven favoring bullish momentum. This statement suggests that Bitcoin is in a strong position to extend its rally and continue its upward trajectory.
The bullish indicators include strong network activity, with the number of active addresses and daily transactions hitting new highs. In addition, the hash rate of the Bitcoin network, which measures its processing power, is also near all-time highs. These indicators suggest that Bitcoin is becoming more widely adopted and that its fundamental strength is increasing.
BTC Shows Positive Signs of Momentum as Glassnode Z-Score and Realized HODL Multiple Rise
Bitcoin is trading above its 20-day moving average and its realized price, with many investors seeing a break above these levels as an indication of near-term momentum for BTC’s price. In addition, the 30-day SMA has been moving above the convergence with the one-year SMA in the last few months, indicating an increase in the pace at which users form wallets.
This movement traditionally leads to a bull market. The Glassnode Z-score, which measures the standard deviations above the two-year mean, is trading positive for BTC. The Revenues From Fees multiply increased on Wednesday but declined on Thursday.
According to Glassnode, the other four indicators show that BTC’s trend will continue in the next few days and likely for the next few months if the collapse of SVB does set off a wide butterfly effect. The one indicator not yet flashing green is trying to break crucial resistance. The Realized HODL Multiple is on the rise but has yet to be in green territory as of the time of writing.
