- An X user shared in a post that BTC’s on-chain behavior is reflecting a cyclical pattern.
- At press time, BTC was trading at $38,765.40 following a 24-hour gain of 1.76%.
- Technical indicators suggest that BTC’s price could rise to the key $40K resistance level.
An X user by the username NeuroInvest Research stated in a post earlier today that on-chain behavior for Bitcoin (BTC) reflects a cyclical pattern. According to the post, this pattern seems to be stimulated by external events the majority of the time.
The X user went on to add that there have been pronounced spikes in BTC outflows recently. Alongside this uptick in outflows, there has also been a notable increase in on-chain liquidity.
Meanwhile, the market leader was changing hands at $38,765.40 at press time. This was after the cryptocurrency recorded a 1.76% gain over the past 24 hours, according to CoinMarketCap. This latest increase in price also boosted BTC’s weekly performance further into the green zone to +2.45%.
BTC was able to break above the key $38K resistance level over the past 24 hours. Should this bullish momentum continue, the leading cryptocurrency could make a move towards the $40K resistance level in the next 24-48 hours.
On the other hand, a sudden wave of sell pressure could lead to BTC retesting the $38K support level. Thereafter, a break below this significant price point may put BTC at risk of falling to $36,880 as well. In an extremely bearish scenario, the largest cryptocurrency by market cap could see its value drop to as low as $35,820.
Technical indicators suggested that BTC may rise in the next 24-48 hours. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators were flagging bullish.
With the MACD line looking to cross the MACD Signal line and the RSI positioned above the RSI Simple Moving Average (SMA) line, buyers seemed to have an upper hand. If these technical flags are validated, BTC could rise to $40K in the next few days.
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