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Bitcoin price is likely to fall into the $59,111 to $53,120 imbalance, which could pile up buyers who are on the sidelines. A bounce from this zone could propel BTC to $80,000, a new all-time high. On-chain statistics support the short-term upswing in BTC.
Bitcoin (BTC)’s recent price consolidation may be nearing its end as technical indicators and on-chain metrics suggest a possible upside breakout. However, this move will not be straightforward and may punish impatient investors.
Also read: Bitcoin Weekly Forecast: BTC post-halving rally may be partially priced in
Bitcoin price sets the stage for the next move
Bitcoin price hovered above the imbalance on the weekly chart, extending from $59,111 to $53,120, without dipping into it. As mentioned in previous forecasts, this ineffective zone is key for potential buy-the-dip orders to trigger. To make the corrective outlook more compelling, investors can observe the set of flat lows formed just above the above imbalance’s upper limit of $59,111.
The ideal scenario for Bitcoin price to restart its uptrend or the bullish atmosphere is to trigger a correction that sweeps the sell-side liquidity resting below $59,111 and into the said imbalance. Depending on the buying pressure here, the recovery rally could turn into a continuation of the bull run.
Assuming buyers increase, Bitcoin price will face resistance around the 2021 high of $69,138. If BTC manages to produce a weekly candlestick near this level, it will mark the first higher high in the six-week consolidation that has set three lower highs.
Such a development will not only build confidence in the crypto landscape, but also start the upward trend, possibly pushing BTC to mark the $80,000 psychological level.
The daily relative strength index (RSI) for Bitcoin price has dropped below the average level of 50 and is attempting a comeback. The same can be said for Awesome Oscillator (AO). To be precise, the RSI’s current position looks similar to what occurred between late December 2023 and early January 2024. To conclude, although both momentum indicators do not yet indicate a bullish scenario, they are set to turn bullish if the situation arises.
Read more: Bitcoin bull plans thwarted by US dollar rally
BTC/USDT 1-week chart
According to Santiment, Bitcoin’s 30-day market value to realized value (MVRV) ratio is currently hovering around -3.00% after recovering from -8.25% in the past few weeks. This indicator is used to determine the average profit or loss of investors who bought BTC in the last month.
The -3.00% indicates that investors who bought BTC in the last month are sitting with an average loss of -3.00%. Ideally, a positive value acts as a sell signal as it reveals unrealized profits. On the other hand, a negative value indicates a potential buy signal due to the unrealized losses.
Although the MVRV has safely recovered from -10%, it still flashes a potential buy signal. As mentioned above, the technicals are predicting a near-term decline, which could give margin buyers another opportunity to desire.
Also Read: Week Ahead: Crypto Market Volatility Likely To Return As BTC Halving Looms
BTC 30-day MVRV
Additionally, the Whale Transaction Count (WTC), which tracks transfers of BTC worth $100,000 or more, has seen spikes during the price drops of the ongoing consolidation. This ratio clearly indicates that these large investors moved their money to buy BTC at a discount.
BTC WTC
All in all, it looks like the Bitcoin price will cause a bullish breakout, but investors should be cautious and patiently wait for a drop. On the other hand, if BTC fails to dip into the $59,111 to $53,120 imbalance, it means that smart money is likely trying to capture early bulls by initiating a quick bounce.
If Bitcoin price produces a weekly candlestick near $53,120, the lower limit of the imbalance zone, it will create a lower low and confirm the persistence of the downtrend. Such a development would invalidate the bullish outlook and potentially lead to prices falling 15% to the next key support level at $45,156.
Bitcoin price is likely to fall into the $59,111 to $53,120 imbalance, which could pile up buyers who are on the sidelines. A bounce from this zone could propel BTC to $80,000, a new all-time high. On-chain statistics support the short-term upswing in BTC.
Bitcoin (BTC)’s recent price consolidation may be nearing its end as technical indicators and on-chain metrics suggest a possible upside breakout. However, this move will not be straightforward and may punish impatient investors.
Also read: Bitcoin Weekly Forecast: BTC post-halving rally may be partially priced in
Bitcoin price sets the stage for the next move
Bitcoin price hovered above the imbalance on the weekly chart, extending from $59,111 to $53,120, without dipping into it. As mentioned in previous forecasts, this ineffective zone is key for potential buy-the-dip orders to trigger. To make the corrective outlook more compelling, investors can observe the set of flat lows formed just above the above imbalance’s upper limit of $59,111.
The ideal scenario for Bitcoin price to restart its uptrend or the bullish atmosphere is to trigger a correction that sweeps the sell-side liquidity resting below $59,111 and into the said imbalance. Depending on the buying pressure here, the recovery rally could turn into a continuation of the bull run.
Assuming buyers increase, Bitcoin price will face resistance around the 2021 high of $69,138. If BTC manages to produce a weekly candlestick near this level, it will mark the first higher high in the six-week consolidation that has set three lower highs.
Such a development will not only build confidence in the crypto landscape, but also start the upward trend, potentially pushing BTC to mark the $80,000 psychological level.
The daily relative strength index (RSI) for Bitcoin price has dropped below the average level of 50 and is attempting a comeback. The same can be said for Awesome Oscillator (AO). To be precise, the RSI’s current position looks similar to what occurred between late December 2023 and early January 2024. To conclude, although both momentum indicators do not yet indicate a bullish scenario, they are set to turn bullish if the situation arises.
Read more: Bitcoin bull plans thwarted by US dollar rally
BTC/USDT 1-week chart
According to Santiment, Bitcoin’s 30-day market value to realized value (MVRV) ratio is currently hovering around -3.00% after recovering from -8.25% in the past few weeks. This indicator is used to determine the average profit or loss of investors who bought BTC in the last month.
The -3.00% indicates that investors who bought BTC in the last month are sitting with an average loss of -3.00%. Ideally, a positive value acts as a sell signal as it reveals unrealized profits. On the other hand, a negative value indicates a potential buy signal due to the unrealized losses.
Although the MVRV has safely recovered from -10%, it still flashes a potential buy signal. As mentioned above, the technicals are predicting a near-term decline, which could give margin buyers another opportunity to desire.
Also Read: Week Ahead: Crypto Market Volatility Likely To Return As BTC Halving Looms
BTC 30-day MVRV
Additionally, the Whale Transaction Count (WTC), which tracks transfers of BTC worth $100,000 or more, has seen spikes during the price drops of the ongoing consolidation. This ratio clearly indicates that these large investors moved their money to buy BTC at a discount.
BTC WTC
All things considered, Bitcoin price looks like it will trigger a bullish breakout, but investors should be cautious and patiently wait for a drop. On the other hand, if BTC fails to dip into the $59,111 to $53,120 imbalance, it means that smart money is likely trying to capture early bulls by initiating a quick bounce.
If Bitcoin price produces a weekly candlestick near $53,120, the lower limit of the imbalance zone, it will create a lower low and confirm the persistence of the downtrend. Such a development would invalidate the bullish outlook and potentially lead to prices falling 15% to the next key support level at $45,156.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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