Bitcoin’s (BTC) price soared above $42K earlier today for the first time in a month as the top cryptocurrency looks to move out of a two-month-long bearish phase. The price rise saw BTC record a new monthly high of $42,235 before retracing below $42K. The next resistance lies at $45K and if BTC manages to break past it, it will be back on track to retest its previous ATH of $64,863.
The top cryptocurrency’s on-chain metrics have started to flash bullish signals again as it recorded 10 straight daily green candles for the first time in over 4 years. The last time BTC managed to record 10 daily green candles in a row was in May 2017 with 12 candles in a row.
Bitcoin has consolidated a majority of the last two months under $35K with occasional breakouts up to $40K. $40,000 was the key resistance which it has managed to break and needs to solidify above $40K to continue the bullish momentum.
Fear and Greed Index Returns to “Greed”
The Fear and Greed index reflects the market sentiment towards an asset. For the past couple of months, the index remained at 10 which signified extreme fear among investors. The index flashed neutral just a couple of days ago as value grew up to 50, but now it is at 60, signifying rising greed among investors.
The exchange outflow of Bitcoin has also reached a new 5-year high as traders continued moving record volumes of BTC away from exchanges. A total of 60,000 BTC has moved away from the exchanges that plunged exchange supply to a 5-year low.
FYI yesterday was the largest day of net outflows from exchanges since mid-2016, with exchange balances dropping by 60,004 BTC.
Watching to see if we get a continued decline of exchange balances in the coming weeks. pic.twitter.com/0REQUPY4pM
— Will Clemente (@WClementeIII) July 29, 2021
The bitcoin wallet activity has also seen a significant spike over the past week rising by 30%.
“Bitcoin has seen a resurgence in Active Entities over the past week, rising by 30% from 250k to 325k active entities per day. This degree of activity was sustained in July 2020 when $BTC prices were around $11.3k in Q2-2020″.
Market analysts have continued to predict that Bitcoin would bounce back from its current bearish phase during the two-month-long bearish phase. The price rebound of BTC indicates that those predictions were on-point.