After the United States Federal Reserve decided to keep interest rates steady and Fed Chairman Jerome Powell’s optimistic approach to the future, Bitcoin rose to the $43,000 level. At the time of writing, Bitcoin is trading at $42,117.
Data from TradingView indicates that the upward trend could continue along with the reset of on-chain data. According to analyses, Bitcoin, which saw $44,000 this month, needed to cool down a bit and conditions began to improve after a near $40,000 trajectory.
Philip Swift, the creator of the blockchain data analysis source Look Into Bitcoin, posted on December 13 that the BTC/USD pair had reached the highest levels in the last 19 months and that profit-taking had increased. Swift highlighted the Value Days Destroyed data multiplied by the current Bitcoin price, pointing out that this metric had reached its highest level since May 2021.
VDD is a metric that aims to measure Bitcoin selling activity at a certain price point, based on how long the newly activated supply has been inactive. Accordingly, recent sales have been carried out by short-term holders, who are more speculative within the Bitcoin investor base.
Looking at the short-term movements of the Bitcoin price, many analysts continue to see the potential for the price to advance towards the main resistance around $50,000. Analyst Matthew Hyland indicates that this situation is reflected in the price’s uptrend, as shown by the Relative Strength Index (RSI) in daily time frames.