Bullish Indicators Suggest BTC Price Rally May Still Continue

• Bitcoin price has been holding steady at the $21K level despite an overbought RSI and another crypto bankruptcy.
• There are, however, some bullish indicators forming such as a solid MA crossover in new Bitcoin addresses.
• Bullish indicators such as higher daily exchange balances and a surge in Grayscale investments indicate that the BTC price rally may still continue.

The cryptocurrency market is at a critical juncture as Bitcoin holds steady at the $21K level despite an overbought RSI and another crypto bankruptcy. Investors are now looking for signs of a price bottom, with many wondering if the market is there yet, or whether bears will take the prices back down to key optical support at $20K.

Fortunately, there are some bullish indicators that suggest the BTC price rally may still continue. On-chain intelligence and insights firm Glassnode has spotted a bullish technical signal in Bitcoin addresses. The 30-day simple moving average (SMA) has charted above the 200-day SMA since the beginning of November, indicating that the long-term trend of the digital asset is still upwards.

Other bullish indicators include higher daily exchange balances and a surge in Grayscale investments. Data from Glassnode shows that balance on exchanges have been steadily rising since August, reaching new all-time highs in December. This suggests that traders are holding more BTC on exchanges, which could be a sign of bullish sentiment.

Grayscale Investments, one of the largest institutional investors in the crypto space, has also seen an increase in investments. In December, the total amount of BTC held by Grayscale increased by 18%, from 476,000 BTC to a whopping 565,000. This is the highest amount of BTC that Grayscale has held since its launch in 2013.

These bullish indicators suggest that Bitcoin’s price rally may still have some legs, despite the overbought RSI and recent crypto bankruptcy. With the daily exchange balances and Grayscale investments both rising, it appears that more investors are buying into the digital asset on a long-term basis. This indicates that the BTC price may be set to continue its upward trend in the coming months.