Crypto researcher Axel Adler says Bitcoin (BTC) seems ready to unleash another haymaker following a two-month pause close to its all-time high. Adler sees a market with enough of fight left in it and a 300-day bull run driven by good short-term holder profits.
Profitable Punches And Room For More
Adler uses Short-Term Holder Spent Output Profit Ratio (STH SOPR) to throw the gauntlet with accuracy. This statistic shows whether short-term holders are profit-driven cashing out.
STH SOPR’s 90-day moving average right now is 1.015, meaning short-term holders are in the green but haven’t achieved the knockout blow levels seen in past bull runs (around 1.06). This implies that until the bulls tyre, there is still opportunity for further profit-taking punches.
I’ve already mentioned that the bull market is in full swing. Barring any unforeseen Black Swan events, it could last for approximately another +/- 300 days.
This is based on the P&L analysis of Short-Term Holders with a 90-day moving average. pic.twitter.com/30OgsruvOi
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) May 21, 2024
Open Interest: The Untapped Reserve Of Strength
Open Interest (OI), a statistic gauging the total outstanding derivative contracts (futures and options) kept by traders, is another weapon in the bull’s toolkit.
Although the recent price increase is remarkable, the 7-day moving average for OI has not shown the kind of explosive increase saw in past bull runs. Adler says this represents a latent reservoir of strength in the market, with additional firepower just ready to be fired.
Technical Edge: Bulls Have Momentum On Their Side
Technical study, however, includes more than just fancy ratios and cryptic graphs. Adler notes a number of technical signs pointing in a favourable direction. A momentum gauge, the Relative Strength Index (RSI) has not broken past 70, a level usually linked with overbought situations.
This points to a sustainable and reasonable present surge. Apart from that, the Chaikin Money Flow (CMF) has risen above positive 0.05 territory, suggesting notable capital inflow and a rising demand for Bitcoin among investors.
Can The Bulls KO Resistance Levels?
There are still obstacles to go even if the bulls seem to have the upper hand. Found utilising Fibonacci extension levels, key resistance values loom at $79k, $88k, and $97k. These pricing points can be obstacles for the rising Bitcoin price.
If the present momentum keeps, though, these resistance levels could be destroyed, opening the path for a probable upward motion beyond and a retest of the all-time high at $73,700.
Featured image from Screen Rant, chart from TradingView