Bitcoin rose to the level of 43,000 dollars following the decision of the United States Federal Reserve to keep interest rates steady on December 13th and the optimistic approach displayed by FED Chairman Jerome Powell regarding the future. At the time of writing, Bitcoin is trading at 42,117 dollars, but what is expected in the upcoming period for Bitcoin? Let’s take a look together.
What’s the Latest on the Bitcoin Front?
TradingView data indicates signs that the upward trend could continue as on-chain data resets. According to analyses, after reaching 44,000 dollars this month, Bitcoin needed to cool down and conditions started to improve after a journey close to 40,000 dollars.
Philip Swift, the creator of the Blockchain data analysis source Look Into Bitcoin, pointed out in a post published on December 13th that the BTC/USD pair reached the highest levels of the last 19 months, leading to an increase in profit-taking. Swift drew attention to the Value Days Destroyed data multiplied by the current Bitcoin price and noted the multi-metric Value Days Destroyed (VDD), which reached its highest level since May 2021 on December 11th, stating:
“The Value Days Destroyed data has reached levels seen at local peaks of previous Early Bull markets as some investors took profits.”
VDD is known as a metric that aims to measure Bitcoin selling activity at a certain price point, based on the length of time the newly activated supply has remained inactive. Accordingly, the recent sales were driven by the more speculative short-term holders or STHs within the Bitcoin investor base.
Analysts Weigh in on Bitcoin
With all these developments, looking at the short-term Bitcoin price movement, many analysts continue to see potential for further progress towards the key resistance close to 50,000 dollars. For analyst Matthew Hyland, this situation is reflected in the daily timeframes by the price’s uptrend shown by the Relative Strength Index (RSI).
Popular analyst and investor Ali also shares the same optimism and points out significant inflows into both Bitcoin and the largest altcoin, Ethereum. According to Ali, these developments are mimicking the conditions of late 2020 when the BTC/USD pair first surpassed 20,000 dollars to enter price discovery:
