Key Points
- A deep learning model predicts Bitcoin’s price might reach new highs in the next 30 days.
- Bitcoin’s metrics indicate low selling pressure and the potential for a price increase.
Bitcoin’s [BTC] performance has been underwhelming in recent days, with the cryptocurrency failing to surpass the $65k mark. However, a deep learning model suggests that Bitcoin’s price could reach new highs within the next month.
According to CoinMarketCap, Bitcoin’s price has been fairly stagnant over the past week, with only marginal movements observed. At the time of writing, Bitcoin was trading at $64,294.85, boasting a market capitalization of over $1.26 trillion.
Deep Learning Model Prediction
CryptoOnChain, an author and analyst at CryptoQuant, shared an analysis that utilized a deep learning model to predict Bitcoin’s price action over the next 30 days. The model was trained using 370 on-chain indicators and data from the past year.
The analysis included visual representations of the actual price compared to the model’s predicted price for the training, validation, and test datasets. If the model’s prediction is accurate, Bitcoin’s price could see bullish momentum after 25 days, potentially exceeding $77k.
Bitcoin’s Metrics
Considering the ambitious $77k target, we examined Bitcoin’s metrics to determine if the cryptocurrency is preparing for a bull run. We discovered that its Network to Value (NVT) ratio had significantly dropped, indicating that the asset may be undervalued and a price increase could be imminent.
Several other metrics also suggested a bullish outlook for Bitcoin. Data analysis revealed that Bitcoin’s exchange reserve was decreasing and its net deposit on exchanges was lower than the average of the past seven days. This suggests that selling pressure on Bitcoin is decreasing.
Currently, Bitcoin’s fear and greed index stands at 70, indicating a “greed” phase in the market. This could potentially lead to difficulties in the short term.
Upon examining Bitcoin’s daily chart, it was observed that Bitcoin was unable to surpass its 20-day Simple Moving Average (SMA). Furthermore, its Chaikin Money Flow (CMF) and Relative Strength Index (RSI) were stagnant, suggesting that the market may continue to move slowly in the coming days.
