The decision of the US Federal Reserve to keep interest rates steady on December 13 and Federal Reserve Chairman Jerome Powell’s optimistic outlook for the future led to Bitcoin rising to the $43,000 level. At the time of writing, Bitcoin is trading at $42,117, but what can be expected for Bitcoin in the coming period?
According to TradingView data, on-chain data resets indicate that Bitcoin’s upward trend could continue. Analyses show that after reaching the $44,000 levels this month, Bitcoin needed some cooling off and after a journey around $40,000, conditions have started to improve.
Philip Swift, the creator of the Blockchain data analysis source Look Into Bitcoin, pointed out in a post published on December 13 that the BTC/USD pair reached the highest level of the last 19 months, highlighting an increase in profit-taking. Swift mentioned that the Value Days Destroyed (VDD) metric, which results from multiplying the current Bitcoin price with the Destroyed Days data, reached its highest level since May 2021 on December 11.
VDD is a metric that aims to measure Bitcoin selling activity at a certain price point based on how long the newly active supply has been inactive. According to this, recent sales were driven by short-term holders (STHs) who are more speculative within the Bitcoin investor base.
Experts’ short-term expectations for Bitcoin price movements suggest that the price has the potential to advance further towards the significant resistance around $50,000. Analyst Matthew Hyland suggests that this situation is reflected in the rising trend of the price in daily time frames, as indicated by the Relative Strength Index (RSI).