The price of Bitcoin (BTC) has risen above $38,000 after nearly 21 days beneath this level with the exception of the "Elon Musk" rally final week. There are four major factors that have coincided with the rebound in BTC toll to a higher place this key level that could encounter Bitcoin have another get at $42,000.

These factors include the neutral Relative Strength Alphabetize (RSI) indicator, miner outflow decreasing, exchange netflow back into negative, and whale accumulation.

Whale accumulation coincides with negative commutation netflow

According to the pseudonymous cryptocurrency trader "Bitcoin Jack," Bitcoin is demonstrating a "cup and handle" technical germination.

The technical formation typically indicates a tendency reversal to the upside, which will be all simply confirmed if Bitcoin follows up with a breakout in the short term.

The trader also emphasized the negative exchange net flow from exchanges, which shows signs of a Bitcoin aggregating phase. Citing data from CryptoQuant, the trader wrote:

"Bitcoin looks like a cup & handle - negative exchange net period supports accumulation thesis New ATH around the corner for $BTC."
Bitcoin commutation net menstruation. Source: CryptoQuant

Negative exchange net menses is an important metric considering it shows that Bitcoin is moving out of exchanges.

High-net-worth investors prefer to move Bitcoin out of exchanges later on they accumulate it for security and cocky-custody reasons. When BTC is moved to a non-custodial wallet, no one would have access to it other than the owner of the private keys.

Furthermore, analysts at Glassnode found that the number of whales belongings Bitcoin has essentially increased so far this yr. The combination of the negative internet catamenia and the rise in whales show that the level of Bitcoin accumulation remains loftier. They wrote:

"The number of #Bitcoin whales (entities holding ≥ 1k $BTC) has seen an phenomenal increase. Since the beginning of the twelvemonth, more 200 new whale entities have appeared in the network –– data supporting the case that institutions are arriving."

The RSI of Bitcoin is neutral

The RSI of Bitcoin beyond many time frames has returned to around 50, which is neutral. The RSI is an indicator that measures whether an asset is overbought or oversold.

If the RSI of Bitcoin exceeds 75, so information technology would be considered overbought; if it falls under 30, information technology is considered oversold.

Although Bitcoin remains close to the overbought area on the daily and weekly time frames, which are high time frames, the RSI stands between 45 and 60 across most depression time frame charts. This suggests that Bitcoin has upside potential in the nearly term.

Miner outflow declines

Bitcoin miners are ane of the major sources of selling pressure on BTC because they represent unmatched selling pressure.

As such, when miners begin selling the BTC they mine on exchanges, it tin place significant pressure on the brusk-term price cycle of Bitcoin.

Bitcoin Miners' Position Index. Source: CryptoQuant

According to information from CryptoQuant, the Miners' Position Index (MPI) has been failing. At least in the foreseeable future, this ways that the selling pressure level coming from miners should exist low.