Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
U.Today - While the cryptocurrency market appears quiet on the surface, an important indicator suggests that there may be a shift in Bitcoin sentiment.
The 7-day moving average of the Bitcoin Combined Market Index (BCMI) has risen to about 0.6. Traders often see this increase as an early sign of optimism.
BCMI suggests potential BTC price uptrend
In contrast, the 90-day average of this index remains stable at 0.45, suggesting that the market isn’t overheated yet. The BCMI is a combination of many factors like the Fear & Greed Index, unrealized gains (NUPL), investor profitability (MVRV), and spending trends (SOPR).When this index is below 0.15, it is a sign of extreme fear and a possible buying opportunity. But if it rises above 0.75, it is a sign of excessive excitement, a warning sign that a downturn could happen soon.
However, the occurrence of the rebound during a period when there’s a slowdown of profit-taking is a shift that happens before accumulation phases. During this phase, investors accumulate BTC more aggressively.
The change in the BCMI suggests underlying strength while the broader market remains cautious.
Historically, these signs have sometimes marked the start of a BTC price uptrend. For now, the BTC long-term trend is in neither fear nor greed. But if the short-term rebound holds, it means there is growing confidence of a price rally among traders.
Bitcoin price dips slightly
BTC experienced a 0.9% drop in price to $106,057 in the last 24 hours, according to TradingView data. The 4-hour timeframe of the TradingView chart includes Fibonacci retracement levels, a tool for identifying possible support and resistance zones.The key levels highlighted were $110,000, $100,000, $95,000, and $80,000. These are price points where Bitcoin’s price could face selling pressure or find stability in the short term. In addition, the Average Directional Index (ADX), which measures trend strength, stood at 20.73.
This figure points to some directional momentum in the market, even though it doesn’t indicate an extremely strong trend. The recent dip, though minor, is proof of a consolidation period after price uptrends earlier in May.
The Relative Strength Index (RSI) at 35.75 is near the oversold region, suggesting that selling activity is nearing exhaustion even though it was previously aggressive. Earlier today, popular American financier
Anthony Scaramucci predicted that the excessive spending of the U.S. government could cause Bitcoin to trade at $500,000 soon.