{"id":26612,"date":"2023-12-14T09:32:24","date_gmt":"2023-12-14T09:32:24","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-bulls-eye-btc-price-comeback-as-cash-inflows-echo-late-2020\/"},"modified":"2023-12-14T09:32:25","modified_gmt":"2023-12-14T09:32:25","slug":"bitcoin-bulls-eye-btc-price-comeback-as-cash-inflows-echo-late-2020","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-bulls-eye-btc-price-comeback-as-cash-inflows-echo-late-2020\/","title":{"rendered":"Bitcoin bulls eye BTC price comeback as cash inflows echo late 2020"},"content":{"rendered":"
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Bitcoin (BTC) is displaying fresh bull run signals as BTC price strength produces 7% daily gains.<\/p>\n

BTC\/USD 1-hour chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

BTC price bounces after snap sell-off<\/h2>\n

Data from Cointelegraph Markets Pro and TradingView hints that upside momentum may continue as on-chain metrics reset.<\/p>\n

Bitcoin \u201cneeded to cool off\u201d after hitting $44,000 this month, analysis believes, and after a trip to near $40,000, conditions are improving.<\/p>\n

In a post<\/a> on X (formerly Twitter) on Dec. 13, Philip Swift, creator of statistics resource Look Into Bitcoin, showed profit-taking surging as BTC\/USD hit its latest 19-month highs.<\/p>\n

He flagged the Value Days Destroyed (VDD) Multiple metric, which multiplies Coin Days Destroyed by the current BTC price and tha on Dec. 11 hit its highest level since May 2021.<\/p>\n

\u201cValue Days Destroyed has now reached levels seen at previous Early Bull local highs as some HODL’ers take profit,\u201d part of commentary stated.<\/p>\n

VDD seeks to quantify Bitcoin selling activity at a given price point based on the length of time at which the newly-reactivated supply was previously dormant. <\/p>\n

As Cointelegraph reported, recent selling has been driven by short-term holders, or STHs \u2014 the more speculative cohorts among the Bitcoin investor base.<\/p>\n

Value Days Destroyed (VDD) Multiple chart. Source: Look Into Bitcoin<\/em><\/figcaption><\/figure>\n

Bitcoin, Ethereum see inflow boost<\/h2>\n

Looking at short-term BTC price action, meanwhile, others see the potential for further progress toward key resistance nearer $50,000.<\/p>\n

Related:\u00a0\u2018Take some rest and GO\u2019 \u2014 Bitcoin price copies 2020 bull run fractal<\/em><\/strong><\/p>\n

For analyst Matthew Hyland, this comes in the form of the relative strength index (RSI), which on daily timeframes has printed a bullish divergence with price.<\/p>\n

\u201cBTC close confirmed it,\u201d he told<\/a> X subscribers on Dec. 14.<\/p>\n

BTC\/USD 1-day chart showing RSI divergence. Source: Matthew Hyland\/X<\/em><\/figcaption><\/figure>\n

Just as optimistic is popular social media commentator Ali, who spied a return of significant inflows into both Bitcoin and largest altcoin Ether (ETH).<\/p>\n

These, he noted, mimic conditions from late 2020, when BTC\/USD first broke beyond $20,000 to enter price discovery.<\/p>\n

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Over $19.7 billion are flowing into #Bitcoin<\/a> and #Ethereum<\/a> today! This is around the same capital inflow we saw back in December 2020 before $BTC<\/a> surged from $18,000 to $65,000! pic.twitter.com\/pBALVN0C2c<\/a><\/p>\n

\u2014 Ali (@ali_charts) December 14, 2023<\/a><\/p><\/blockquote>\n

\u201cWe have a plan. We know where we’re going, why we’re going, and when we’re going. The rest is just noise,\u201d fellow commentator BitQuant added<\/a> in the latest series of bullish BTC price prognoses. <\/p>\n

\u201cBitcoin should overcome the $42K-$45K channel by the end of the coming week, and then there are no more strong resistances until $63K.\u201d<\/p><\/blockquote>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n