Bitcoin: euphoria ravages the market; the uptrend remains strong

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BTC’s social dominance has increased significantly since the start of the year. Its price could rise further as the bullish sentiment persists in the market.

Growth in the general cryptocurrency market since the start of the 2023 trading year has led to a rally in Bitcoin [BTC] market dominance. At 44.18% at press time, it is up 5% since January 1.

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Data from social cryptocurrency analytics platform LunarCrush revealed that the spike in BTC dominance and its price over the past 27 days has resulted in a spike in discussions around the master coin.

According to LunarCrush, there are actually more people talking about $BTC now than the last time it was at its current market cap.

But if we just look at #Bitcoin’s market cap and social contributors, there are actually more people talking about $BTC now than last time it was at its current market cap.

Previews: https://t.co/ZV1hYBzqmL pic.twitter.com/4rJmA3Qhh9

— LunarCrush (@LunarCrush) January 27, 2023

The king is not yet done

Typically, an increase in the social dominance of a crypto asset while its price is also rising can suggest euphoric sentiment among investors and traders. This usually indicates that the price of the crypto asset may be approaching a peak and a decline in price may follow.

However, an assessment of BTC performance on the daily chart revealed that the uptrend remains strong.

How much are 1,10,100 BTC worth today?

First, the major Open Interest coins have remained in an uptrend since the start of the year. In fact, over the past month, BTC open interest has increased by 63%, according to data from Coinglass.

An increase in an asset’s open interest suggests that more traders are holding open positions in that asset. This can signal growing demand, increased market activity, and liquidity in the market for that asset. As of press time, BTC open interest stands at $82.83 million.

Source: Coinglass

Additionally, in an upward trend at press time, BTC Breakeven Volume (OBV) was spotted at 733.426k. Since the start of the year, the king of OBV coins has been on an upward rally.

A steady increase in an asset’s OBV often means that more traders are buying the asset than selling it. The buying pressure is therefore stronger than the selling pressure.

Additionally, a look at the BTC AROON indicator confirmed the strength of the uptrend in the current market. As of this writing, the AROON Up line is set at 78.57%.

When the Aroon Up line is close to 100%, it indicates that the uptrend is strong and the most recent high was reached relatively recently.

Finally, BTC’s Absolute Price Oscillator (APO), which was in an uptrend at press time at 1127.11, gave credence to the strength of the market’s uptrend.

Source: BTC/USDT on TradingView

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