Key Points
- The Bitcoin Macro Oscillator Momentum (BMO) suggests potential for increased BTC price.
- Despite short-term selling pressure, analysts see significant upside potential for BTC.
Despite the short-term sell pressure, the potential for BTC to increase remains high.
BTC has been in a price consolidation phase, ranging from $60K to $72K, for over two months. This has been particularly frustrating for short-term holders who were expecting significant price increases.
Analysts’ Perspective
Crypto analyst Willy Woo, however, views this consolidation as beneficial for BTC’s potential to increase. Woo’s projection is based on the Bitcoin Macro Oscillator (BMO), which indicates that further upward movement is possible.
The BMO is a collective momentum metric that includes other key indicators such as MVRV (Market Value to Realized Value), VWAP (Volume-Weighted Average Price), CVDD (Cumulative Value Days Destroyed), and the Sharpe ratio. Essentially, the BMO filters out short-term price fluctuations and determines whether BTC has reached its lowest or highest point from a long-term perspective.
In the market cycles of 2017 and 2021, BTC peaked after the BMO reached 1.8. At present, the indicator’s reading is below 1. Based on the BMO, Woo predicts that the indicator could reach 1.8 again, providing more room for BTC’s price to increase.
Resistance and Bullish Outlook
Despite the positive outlook, renowned BTC technical chart analyst Peter Brandt believes that the resistance near the last cycle high of $69K is still a significant obstacle. Brandt asserts that BTC must reach new highs to confirm the bullish trend.
However, a recent report found that most metrics still indicate a bullish scenario for BTC. Miners are not selling their holdings, and market sentiment signals ‘greed.’ The only issue for BTC’s price is the short-term holders, who are in profit and could decide to book profits, thereby inducing short-term selling pressure.
Crypto analyst Cryp Nuevo predicts that a liquidity hunt could override short-sellers given that most liquidity is situated near the range-highs at $72K. If BTC clears the month-long range highs, the $79K could be the next bullish target.
The bullish sentiment is further reinforced by crypto trading firm QCP Capital. The firm described recent short-term BTC selling pressure as ‘blips’ in a ‘higher trend.’
