- USDT circulating increased, suggesting a BTC price increase shortly.
- The MACD and RSI indicated a possible bullish move for the coin.
- New Bitcoin addresses are buying the dip, indicating a likely rise above $43,000.
According to Simona_APC, a CryptoQuant author, Bitcoin’s (BTC) price could be positively affected by the rise in USDT’s circulation supply. To back up her point, the on-chain analyst referred to historical data.
Simona used an example in 2022, citing how USDT’s supply has increased by 30 billion since 2022. She also noted that each increase was followed by a notable BTC pump.
Bears Have No Chance
Coin Edition analyzed the data above and observed that there was a strong correlation between BTC’s price and the stablecoin supply. So the recent increase suggests improved liquidity in the market due to the capital inflows.
It was also a sign of growing investor interest in the coin. At press time, BTC changed hands at $42,259, indicating how the coin has been recovering over the last few days.
From the 4-hour BTC/USD chart, the coin was exploring a move to $43,000. Before this, Bitcoin experienced a downtrend and later fell into consolidation.
Current oscillating indications revealed that BTC’s uptrend might continue. For example, the Relative Strength Index (RSI) was 60.86, suggesting that the market is in a buying mood. Should this continue, Bitcoin might disappoint bears and improve on its positive outlook.
The Moving Average Convergence Divergence (MACD) also sheds light on BTC’s potential movement.
As of this writing, the MACD was in positive territory, reflecting a bullish momentum for the coin. Furthermore, the 12-day EMA (blue) had risen above the 26-day EMA (orange). This flip was a testament to the rising dominance of buyers over sellers.
New Entrants Arrive
In a related development, analyst Ali Martinez also commented on Bitcoin’s price. According to Martinez, on-chain data from Glassnode displayed an increase in investor interest.
Using the growth in the number of Bitcoin new addresses, the analyst noted that market players have been buying the dip.
If this buying pressure continues, Bitcoin might not halt its upward move. From a bullish perspective, a higher rebound could be next. This was because of the signals shown by the MACD and RSI.
If this is the case, BTC might not drop below $40,000 anytime soon. But from the bearish angle, mixed signals could come up from other indicators. If some are bearish while others are bullish, BTC might head back to consolidation.
In this instance, the coin price could move between $40,500 and $42,700. However, the current condition suggests an upward move rather than a southward one.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
