Bitcoin has stopped declining since Friday

Holding on to BTC Longs As Buyers Remain in Control on Strong Fundamentals

Posted Monday, March 20, 2023 by
Skerdian Meta • 2 min read

Bitcoin has stopped declining since Friday

Digital currencies have been displaying great buying momentum recently and Bitcoin which is the largest cryptocurrency by market capitalization recently pushed above $28,000, reaching $28,460 and gaining 3% in the last 24 hours. Many were expecting cryptocurrencies to continue declining after the failure of the FTX crypto exchange, but after the initial scare cryptos reversed higher and Bitcoin moved above $20,000 at first. The bullish momentum continued and the $25,000 level was broken, while yesterday buyers pushed BTC above $28,000.

The banking disaster is assisting the crypto market, as buyers fall back from conventional banks and find shelter within the new finance industry. The first chapter, where Silvergate and Signature banks fail, is followed by a systematic crisis of confidence in the global financial system. Bitcoin is benefiting from all this turmoil, acting as a place to store value, particularly in moments of global turmoil, and the fundamentals look solid for further gains in the months ahead.

Popular on-chain Bitcoin analyst Willy Woo has discovered that facts seems to expose that BTC`s Fundamental Strength Indicator, which tracks the energy of 17 essential and technical indicators such as the Relative Strength Index (RSI), its supply in profit, the realized PnL, real profit to value ratio, balanced cap, realized HODL waves, etc, is “not overheated and beginning to rise.”

The trading volume has increased 47% this week, reaching $47,926,311,678 from around $30,000,000,000 at the end of last week, while for the year it has increased around 400%, up from around $10-13,000,000,000 in early January. The average block size hit 2.50 in February, up from 1.901 earlier this year and up from 1.280 at the start of 2022. This is an almost 100% increase from a year ago.

Bitcoin H1 Chart – MAs Are Acting As Support

BTC continues to make higher highs

Long-term BTC holders currently own over 75% which is the highest since October 2015, showing that they are persistent in their ‘hodling’ behavior. The number of non-zero Bitcoin addresses has also been going up, reaching a record of 47.5 million as of March 2023.

So, everything is looking great for Bitcoin only a few months into 2023, which indicates that the crypto winter might be over. We are already long on BTC/USD from last week and are holding on to our trade despite the retreat in the US session today, as risk sentiment improves. Moving averages are doing a good job acting as support as well, so the bullish will likely resume again and we will see $30,000 soon.