By Marcus Sotiriou, Analyst on the publicly listed digital asset dealer GlobalBlock (TSXV:BLOK).
Bitcoin reclaimed $19,000 final night time, as a key technical indicator suggests we could have some upside within the coming days.
The RSI (Relative Strength Index) is exhibiting a bullish divergence on the every day timeframe, as proven beneath. This happens when price makes a decrease low and RSI indicator makes a better excessive, which usually ends in a future bullish development.
The macroeconomic setting continues to trigger concern for traders, because the European vitality disaster dominates headlines. Germany’s sanctions in opposition to Russia have led to the shutdown of the NordStream pipeline, which has resulted in fuel costs hovering – Germans have been lining the streets in protest in opposition to their nation’s sanctions which have prompted Russia’s response.
However, the specter of motion could have extra sustainable price influence than the motion itself. With no extra threats of serious Russian pipeline circulation cuts, the provision aspect steadiness may begin to even out within the coming months.
Amongst the bearish macroeconomic elements, Bitcoin’s fundamentals develop by the day, because the variety of Bitcoin on the Lightning Network continues to make all-time highs. There are nearly 4,700 Bitcoin on the Lightning Network. Also, MicroStrategy introduced on Tuesday they’re engaged on options to onboard tens of millions of individuals onto the Lightning Network.
The Lightning Network is a scalability resolution constructed on high of Bitcoin, that enables customers to quickly ship and obtain BTC with nearly no charges, so if this turns into adopted globally, Bitcoin could have a robust utility with a funds community.