Bitcoin is showing signs of a fresh bull run as its price strength leads to daily gains of 7%. After a sell-off, the price of BTC has bounced back and on-chain metrics suggest that the upward momentum may continue. Analysts believe that Bitcoin needed to cool off after reaching $44,000 earlier this month, and conditions are now improving after a drop to near $40,000.

Philip Swift, creator of statistics resource Look Into Bitcoin, highlighted the Value Days Destroyed (VDD) Multiple metric, which measures Bitcoin selling activity based on the length of time the supply was previously dormant. The VDD has reached levels seen at previous early bull local highs, indicating that some HODL’ers are taking profit.

Short-term BTC price action suggests the potential for further progress towards key resistance near $50,000. Analysts point to the relative strength index (RSI), which has printed a bullish divergence with price on daily timeframes. This indicates a positive outlook for Bitcoin.

There is also a return of significant inflows into Bitcoin and Ethereum, similar to the conditions seen in late 2020 when BTC first broke beyond $20,000. Over $19.7 billion is flowing into Bitcoin and Ethereum, indicating strong investor interest.

Commentators are optimistic about the future of Bitcoin, with some predicting that it will overcome the $42K-$45K channel by the end of the coming week. They believe that there are no strong resistances until $63K, suggesting further potential for price growth.

It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.