Bitcoin: What this metric says about BTC’s price trends

Journalist

Posted: December 22, 2023

• There’s a distinction within the RSI information from Santiment and TradingView.
• Their implications stay bullish regardless of the minor variations.

In a recent post on X (previously Twitter), Santiment famous that Bitcoin’s [BTC] costs had a powerful cause to bounce larger. Though AMBCrypto’s evaluation agreed with this discovering, there have been some fascinating nuances in there.

The ascent previous the $43k resistance on the twentieth of December was an encouraging signal of bullish energy. A current AMBCrypto report highlighted that miner income was excessive, and rising transaction charges contributed to this.

A better take a look at the metrics

AMBCrypto took a take a look at Santiment and famous that the social quantity decreased over the weekend. This has been a constant development stretching again months, so it wasn’t a shock.

The handle rely with 100+ BTC rose from 15941 on the nineteenth of December to 15956 on the twentieth of December.

Supply: Santiment

The age-consumed metric noticed a spike on the 18th of December and mirrored a potential improve in promoting strain. Since then, it has not seen main surges.

Because the Santiment submit highlighted, the RSI fell to 42.09 on the nineteenth of December earlier than bouncing to 50.38 on the twentieth of December.

But, it have to be famous that Santiment’s information is calculated barely in a different way from the go-to platform for technical evaluation, TradingView.

On TradingView, the RSI on the one-day chart for the spot BTC market on Binance was at 57 on the nineteenth of December. On the seventeenth of December, it was at 53.8, which was nowhere near the 42.09 worth we noticed on Santiment.

Supply: BTC/USDT on TradingView

Though the RSI method is similar, minor variations in rounding might result in a discrepancy. Variations in time zones might see completely different day by day closes used as properly.

Furthermore, Santiment would possibly mixture information in a different way, whereas the chart above depends solely on information from Binance.

On the TradingView chart, the RSI was at 45 on the twelfth of October, however has not reached that stage since. A drop beneath 50 can be an early signal that momentum has begun to shift in favor of the sellers.

Does that imply Bitcoin may not be poised for a bounce?

The factor that each charts agreed on was that Bitcoin continued to have a bullish bias. The RSI being above impartial 50 meant the consumers have been nonetheless in management at press time, and the technical construction on the one-day chart remained in favor of the bulls.

Supply: Coinglass

Learn Bitcoin’s [BTC] Worth Prediction 2023-24

BTC was already above the $43k resistance however struggled to interrupt above the native resistance at $44.25k. AMBCrypto famous that the Open Curiosity has trended larger for the reason that nineteenth of December, an indication that sentiment was swaying bullishly once more.

It’s anticipated {that a} transfer previous the $44.2k native resistance would see one other inflow of capital to the futures markets and assist additional positive factors.