- Bitcoin registered a golden cross as the 1-7 day UTXO crossed above the 7-30 day UTXO average
- Cryptocurrency has climbed by 11.56% over the last 7 days
Since hitting a low of $89k a week ago, Bitcoin [BTC] has seen a strong upswing on the charts. In fact, since then, the cryptocurrency has even made significant gains, with BTC valued at over %105,000 at the time of writing. This, on the back of gains of over 11% over the past week alone. Needless to say, the last few days have been very bullish for Bitcoin.
As expected, the latest price pump has left the crypto community eyeing more gains, especially in the short term. That may be the reason why some are suggesting that a potential short-term rally may be incoming, citing ultra-short-term investors.
Bitcoin’s ultra short term remains bullish
According to CryptoQuant’s Burak Kesmeci, Bitcoin’s 1-7 day UTXO average has crossed above the 7-30 day UTXO average.
Source: CryptoQuant
This crossover indicated that the average cost basis for Bitcoin acquired over the past week is rising – A sign of growing interest, despite recent price hikes.
This positive signal proved that the ongoing price upswing has been massively backed by fresh capital inflows. As such, the surge in the number of short-term investors entering the market means strong demand reflecting the resilience of Bitcoin’s upward momentum. Simply put, BTC is seeing greater determination from new investors as they enter the market despite the price action’s movement.
Significantly, with this golden cross emerging, it would seem that the markets are bullish in the short term and BTC may be well-positioned for more gains.
Historically, the last time this crossover occurred, the cryptocurrency rallied by 67% and climbed from $66k to $108k. Therefore, the golden cross hinted at a shift of short-term trends into positive territory – A sign of northbound momentum.
If history is anything to go by, we could see Bitcoin rally again to new highs on the charts.
What’s up on the the metrics front?
Bitcoin’s latest golden cross has corresponded well with the cryptocurrency gaining some form of momentum on the price charts. Can it sustain itself though?
Well, according to AMBCrypto’s analysis, prevailing market conditions and metrics hinted at the ongoing uptrend persisting for now.
Source: CryptoQuant
For example – Bitcoin’s exchange whale ratio recorded a sharp decline.
This dropped to a weekly low, reflecting bullish sentiment among whales. Whales are keeping their assets off exchanges as they continue to accumulate BTC.
Source: Cryptoquant
Additionally, we can see this bullishness across all market participants as Bitcoin’s funding has remained positive too while rising.
In fact, the funding rate surged to 0.0166 – A sign that investors are more bullish with a higher demand for long positions than shorts.
Source: Cryptoquant
Finally, Bitcoin’s NVT Golden Cross declined sharply to hit negative territory. This dip could mean a buying opportunity, one offering investors to accumulate BTC at its press time rates since this could be cheap, before the crypto climbs any higher. What this means is that while BTC may be rising, it’s not very expensive for new market entrants just yet.
Therefore, if these market conditions hold, we could see a breakout past the $106k resistance, with the crypto hitting another ATH in the short term. However, if short-term investors lose momentum, it could dip lower.
