Bitcoin bulls eye BTC price comeback as cash inflows echo late 2020

As BTC price strength takes the market back to $43,000, traders’ cold feet subside. As BTC price strength produces 7% daily gains, we are seeing fresh bull run signals.

BTC price bounces after snap sell-off

According to analysts, Bitcoin “needed to cool off” after reaching $44,000 this month, and following a journey to near $40,000, things are improving. On December 13, Philip Swift, author of the analytics portal Look Into Bitcoin, posted on X (previously Twitter) that profit-taking was soaring as BTC/USD touched its current 19-month highs.

He highlighted the Value Days Destroyed (VDD) Multiple measure, which multiplies Coin Days Destroyed by the current BTC price, which reached its highest level since May 2021 on December 11. “Value Days Destroyed has now reached levels seen at previous Early Bull local highs as some HODL’ers take profit,” the analysis went on to say. VDD attempts to measure Bitcoin selling activity at a specific price point based on the amount of time the newly reactivated supply was previously dormant. According to Cointelegraph, recent selling has been led by short-term holders, or STHs — the more speculative cohorts of Bitcoin investors.

Bitcoin, Ethereum see inflow boost

Others, however, see the potential for further progress into major barrier near $50,000 in short-term BTC price movement. According to analyst Matthew Hyland, this comes in the form of the relative strength index (RSI), which has printed a positive divergence with price on daily timescales. “BTC close confirmed it,” he said on December 14 to X subscribers.

Popular social media analyst Ali is also upbeat, predicting a return of huge inflows into both Bitcoin and the largest cryptocurrency, Ether. He highlighted that these situations are similar to those seen in late 2020, when BTC/USD first went through $20,000 to begin price discovery. “We have a strategy. We know where we’re going, why we’re going, and when we’re going to get there. “The rest is just noise,” another observer, BitQuant, noted in the latest round of bullish BTC price forecasts. “Bitcoin should overcome the $42K-$45K channel by the end of the coming week, and then there are no more strong resistances until $63K.”

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