Bitcoin (BTC-USD) charts revealed two bullish signals after US treasury secretary Janet Yellen warned the US could be “out of cash and unable to pay its bills by early June”.
Bitcoin was trading flat at $27,578 (£21,854) on Tuesday.
In the past two days, bitcoin reserves across all cryptocurrency exchanges have fallen, according to data from CryptoQuant.
This could suggest investors are taking their digital assets off exchanges and transferring them to cold storage, in order to hold in speculation that prices will rise.
Read more: Crypto live prices
Another bullish price movement indicator comes from the CoinDesk Bitcoin Trend Indicator (BTI) that shows long-term holders continue to increase their bitcoin holdings.
Since 31 March, the 30-day change in long-term supply, defined as coins held for 155 days or more, has been trending upward, indicating bullish sentiment and dormant supply.