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Bitcoin price holds over $19k as price indicator signals bullish move

Souvenir tokens representing cryptocurrency Bitcoin plunge into water in this illustration taken May 17, 2022. REUTERS/Dado Ruvic/Illustration
Crypto watchers believe bitcoin is gearing up for a bullish outbreak. Illustration: Dado Ruvic/Reuters (Dado Ruvic / reuters)

Bitcoin has been trading flat throughout the past week, but still holding above $19k. Now analysts claim a price indicator is signalling a bullish breakout for the world's largest cryptocurrency by market cap.

The entire cryptocurrency market increased today by 0.3% to $970bn, with bitcoin (BTC-USD) standing at $19,300 as of the time of writing, a change of 0.1% over the past 24 hours.

Check: Crypto live prices

On Tuesday, altcoins also sidestepped with investors remaining cautious. Ethereum (ETH-USD) jumped over 1% to $1,347.29, up 1% in the past week.

The recent price action saw bitcoin's market cap at $370,397,177,638. The leading digital asset has seen its value deteriorate by approximately 57% in one year.

If past Bollinger bandwidth patterns are taken into account, going back to 2015, bitcoin (BTC-USD) has bounced back after a draw-down of the price by approximately 50%. Bollinger bandwidths are used to predict asset volatility and price action.

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Referring to the indicators that suggest an imminent price movement, George Tung from Cryptosrus said: "From a chart perspective, these indicators are showing that bitcoin is ready to head higher."

One price indicator that has also been foreshadowing a significant price movement for bitcoin (BTC-USD) is the current difference between the mining hash rate and the price of bitcoin.

The bitcoin mining hash rate is up around 90% from one year ago, this means that more mining activity is happening on the network.

Watch: 'Bitcoin will eat into global finance until it's $1m per coin' | The Crypto

It is also a sign of network security, assuming the increased activity is relatively decentralised.

The mining hash rate describes the number of calculations per second that are being conducted to try and generate a new block in the bitcoin blockchain.

On his Youtube channel, crypto-analyst George Tung added: "The hash rate for bitcoin continues to go higher and higher.

"This is important as if there is a large deviation between the hash rate and the price, that usually indicates that a major movement is going to come."

There is currently a large deviation between the bitcoin price (BTC-USD) and the hash rate and if the hash rate continues to increase, but the bitcoin price remains low in comparison, this is an early indicator of significant price movement.

Bitcoin still moves in a positive correlation with equities, such as the S&P 500 (^GSPC) and Nasdaq (^IXIC).

Binance dominating crypto trade volume

New on-chain data has revealed the Binance centralised cryptocurrency exchange dominates trading volume when compared to its competitors, such as FTX and Coinbase.

Binance’s $44 billion in daily volume is unchallenged by any other crypto exchange. The exchange, headed by Changpeng Zhao pushes through around 53% of all crypto trades on spot and derivatives markets.

Read more: 'Too late to use crypto as hedge against falling pound' says BitBoy Crypto

Binance has its own cryptocurrency, BNB, which traded flat today, at $273 as of the time of writing.

The exchange is popular because of its low transaction fees and the exhaustive array of cryptocurrencies that have been listed.

Binance has its own blockchain, the Binance Smart Chain, BSC, however, it is not sufficiently decentralised when compared to the Bitcoin or Ethereum blockchains, as Binance controls most of the validators.

Watch: Bitcoin whales accumulating as crypto rallies after Liz Truss resigns as UK prime minister | The Crypto Mile Weekly Update