Bitcoin BTC/USD is predicted to hit a new all-time high in the near future based on a significant trend indicator.
What Happened: Crypto analyst TechDev highlighted that Bitcoin’s on-balance volume (OBV) is currently hinting at potential new peaks for the cryptocurrency king.
The analyst highlighted that the OBV, an indicator that uses volume flow to anticipate price changes, has historically signaled this ahead of Bitcoin's new record highs in 2017 and 2021.
“Bitcoin's two-month OBV is at new highs. Historically, it's meant a new ATH was no more than two months away… And a top was six to 10 [months away]," he said.
Furthermore, TechDev noted that each time the OBV hits a new high, Bitcoin also achieves a new peak within one candle on the two-month chart.
He cited another indicator, the Vortex Indicator (VI), which is utilized to spot trend reversals and affirm current trends, which has recently displayed bullish signals for Bitcoin for the fourth time.
Why It Matters: The anticipation surrounding Bitcoin’s potential surge is tied to recent developments in the crypto market. The long-awaited Bitcoin ETF is expected to launch in early Jan. 2024.
This impending event has sparked considerable excitement and strategic planning in the crypto market.
Bitcoin’s market capitalization has also experienced a 164% surge in 2023, gaining $539 billion.
This rise is attributed to investor optimism that US regulators might soon approve the first Bitcoin-focused ETF, a decision that could induce a "demand shock" in the market, as suggested by MicroStrategy co-founder Michael Saylor.
Price Action: At the time of writing, BTC was trading at $43,616.73, up 0.05% in the last 24 hours, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo: outsideclick from Pixabay.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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