By Marcus Soterio, analyst A publicly listed digital asset broker GlobalBlock (TSXV: Block).
Bitcoin retook $19,000 last night, as a key technical indicator suggests we may have some upside in the coming days.
RSI (Relative Strength Index) is showing significant variation on daily time frame as shown below. This occurs when the price is low and the RSI indicator is high, which typically results in a future bullish trend.
The macroeconomic environment continues to pose concerns for investors as the European energy crisis dominates the headlines. Germany’s sanctions against Russia have led to the shutdown of the Nord Stream pipeline, which has caused gas prices to rise – prompting a Russian backlash as Germans marched in protest against their country’s sanctions.
However, the threat of action may have a more lasting price impact than the action itself. If there is no further risk of significant Russian pipeline disruptions, the supply balance may begin in the coming months.
Bitcoin fundamentals grow by the day amid bearish macroeconomic factors as the number of Bitcoins on the Lightning network continues to hit all-time highs. There are approximately 4,700 Bitcoins on the Lightning Network. Also, MicroStrategy announced on Tuesday that they are working on solutions to address the millions of people onboard the Lightning network.
The Lightning Network is a measurement solution built on top of Bitcoin, which allows users to quickly send and receive BTC without paying any fees, so if this becomes accepted globally, Bitcoin will have a strong utility with a payment network.