Bitcoin is on track for its third consecutive day of gains. Although not as massive as many expect, the asset is creeping closer to its lost levels.
A closer look at the 1-day chart shows that the apex coin is approaching its fourteen-day high, having gained almost 3%. BTC recently broke above $113k and peaked slightly lower, just below Friday’s high. However, it is worth noting that it is recovering from a minor retracement that occurred earlier.
The charts are undoubtedly bullish as indicators are printing buy signals at the time of writing. For example, the moving average convergence divergence displayed a bullish crossover a few days ago. The signal remains intact as the 12 EMA rises.
Aside from MACD, the relative strength index is at 50. The metric is approaching the levels it peaked during the second half of August. Nonetheless, the latest rise in the indicator reveals rising buying pressure.
Adding to the list of positive indicators is the pivot point standard. Although the apex coin is yet to flip its PP, it tested the mark a few hours ago.
The outlined indicators suggest that Bitcoin may continue its uptrend. However, recent onchain data reveal that traders are not fully confident about this.
Bitcoin is at a Fragile Level
After failing to defend the previous basis at $112k, short-term traders accumulated at another level; $111k. However, they are struggling to keep prices above this level. BTC continued to revolve around the new CB.
Aside from the CB, other metrics are still bearish. For example, the perpetual cumulative volume delta (CVD) remains negative despite the gradual price increases. A closer look at the chart reveals that the reduced demand among perpetual traders at the time of writing is lower than in previous periods.
Nonetheless, the metric also reveals a positive side; it is rising in reaction to the latest price change.
Another indicator that reflects the same trend is spot cumulative volume delta. It is also negative at 65.2 million, indicating that traders are exercising caution. However, it is approaching its high band and is in sync with price, suggesting that the latest movement is not a fluke.
Bitcoin is experiencing notable accumulation, as evidenced by the rise in active addresses. It is worth noting that an analysis indicated a slight drop in AA. It stated that the metric dropped by over 2% to 692k. However, recent data shows that buying has resumed, and wallets actively stacking up the Sats rose to 719k.
Nonetheless, the options delta skew reveals that traders are expecting further price increases. The metric is on the rise, suggesting that investors are anticipating further price increases.
Onchain Activity Remains Moderate
Data from Glassnode indicates the absence of fundamentals that could influence price movements. Nonetheless, capital inflows are resuming as institutions return to accumulating. However, realized cap is rising, indicating moderate selling is still ongoing.
With prices increasing, profitability improved slightly, as supply, NUPL, and Realized P/L all rose within normal ranges. While this reflects growing optimism, it does not equate to a strong conviction of a further uptrend.
Nonetheless, a focus on the 1-day chart shows that if current trading conditions persist, Bitcoin may surge to $116k in the coming days.
