BTC’s On Chain Data Suggests a Bright Short Term Future

Crypto News- In a recent update, Santiment, the blockchain analytics platform, shared insights that suggest the cryptocurrency market might sidestep an immediate correction. This news arrives on the heels of a resurgence in the market, marked by significant gains in Bitcoin (BTC) and various other cryptocurrencies. The report specifically noted BTC’s continued high number of active addresses and the healthy activity of previously dormant tokens. Such patterns have historically aligned with bullish trends in the market, according to Santiment’s analysis.

BTC’s On Chain Data Suggests a Bright Short Term Future

Taking a closer look at the technical side of things, BTC found itself perched precariously at the $34,000 support level after recently reaching a peak of $35,280 over the past few days. Over the last 48 hours, the leading cryptocurrency has seen a gradual price decline, raising concerns about a potential correction down to the $31,400 support level in the near future.

The mentioned bullish scenario could gain validation if BTC’s price manages to breach the $34,000 level within the next 24-48 hours. Extended pressure from sellers could potentially push the cryptocurrency’s price down to as low as $28,760 in the short term.

Adding weight to the argument for a bearish outlook is the formation of a bearish ascending triangle on BTC’s daily chart, which implies the potential for a price pullback. Moreover, the daily chart’s RSI (Relative Strength Index) indicates a weakening of buyer strength and signals that BTC has ventured into an extremely overbought territory, a condition often seen as a potential opportunity for short positions by traders.

Nevertheless, there’s still room for BTC to make gains in the coming days, as the bearish ascending triangle is generally regarded as a medium-term pattern. Consequently, the market leader might attempt to challenge the $36,900 resistance in the upcoming week. It’s essential to note, however, that this optimistic thesis could be invalidated if BTC closes a daily candle below $34,000 within the next 48 hours.