By Marcus Sotiriou, analyst at the UK-based digital asset broker Global block
Bitcoin continues to look bullish from an on-chain perspective as whale stocks hit their highest level since September of last year. We can see that when whale stocks increased dramatically last September, it led to a significant price increase in November. As whales have a substantial impact on the market, this metric is important to consider.
Also, technically, Bitcoin looks bullish in the short term as it has once again confirmed a bullish divergence on the RSI indicator on the daily timeframe. While retail sentiment is extremely bearish, I remain cautiously optimistic as many indicators suggest we are in an accumulation phase.
The Central African Republic (CAR) has become the second country to approve Bitcoin as legal tender. This is just one example of positive support for crypto at the government level, as Brazil has approved a law to regulate crypto in the country. This comes after a senior Ukrainian official announced on Monday that Ukraine aims to become one of the top 5 countries in the world in terms of crypto legislation, while having the “full support” of President Volodymyr Zelenskyy.
It seems clear that countries around the world are now racing to not be left behind in this digital asset revolution, as it becomes increasingly clear just how powerful the technology is. The Mayor of Buenos Aires, Rodriguez Larreta, understood this, as she said during a presentation, “we firmly believe that citizens must own their information, their documents, because we trust in their capacity, and they have a responsibility to do so. All this data flow, which will increase exponentially, will be protected by blockchain technology. The mayor of Buenos Aires clearly recognizes how cryptocurrencies provide so much more than money and are an unstoppable force with unlimited capabilities.