As Bitcoin Sits Comfortably Atop $30K, On-Chain Metrics Suggest Further Upside For the BTC Price
Bitcoin (BTC), the most valuable cryptocurrency in the world by market capitalization that powers the world’s first cryptographically secured, decentralized payments ledger, hit its highest level since June 2022 on Thursday to the north of the $30,600 level.
BTC/USD was last changing hands up in the region of 1.6% on the day, having recovered well from an earlier dip to the south of the $30,000 mark.
The latest push higher, which was catalyzed by a bullish breakout to the north of a pennant structure late last week, has seen Bitcoin extend its on-the-year gains to more than 80%.
The April rally, which has seen BTC pop over 6.5% already this month, comes as a string of US data show 1) US economic activity is fast slowing, 2) inflation continues to drop quickly and 3) while still healthy, the US labor market may also be turning.
All of this at a time when the effects of last month’s bank crisis (which is expected to trigger a credit crunch) are yet to start being felt in the US economy.
Bitcoin’s powerful rebound in mid-March from a retest of the 200DMA (and realized price) just under $20,000 was interpreted by many as bull market confirmation at the time, and continues to offer tailwinds.
Moreover, the golden cross enjoyed by the BTC price back in early February – historically a very bullish signal for BTC – is another longer-term technical tailwind for the price action.
Bitcoin’s 14-Day Relative Strength Index (RSI) is flirting with being in overbought territory, suggesting that the risk of short-term profit-taking is on the rise.
But this doesn't always prevent BTC from continuing on a decent run of short-term gains, with the recent price rally from mid-January to February a good example of this.