Key Points
Bitcoin’s [BTC] price momentum has slowed down after surpassing the $50,000 mark. The leading cryptocurrency’s price has been oscillating within a specific range, hinting at a few more days of sluggish movement.
Over the past 30 days, Bitcoin’s price has increased by almost 30%, but has recently become stagnant. This is demonstrated by the minimal movement in its value in recent days.
As of now, Bitcoin is trading at $50,948.23, boasting a market capitalization exceeding $1 trillion. According to a recent tweet from Coinglass, Bitcoin’s price has been fluctuating between the $52k and $50.5k range, which serve as its resistance and support levels, respectively.
Bitcoin’s Potential Price Movements
Should Bitcoin’s price break through the resistance zone, it could potentially reach $55,000. Conversely, if Bitcoin falls below its support zone, investors could potentially see a further downward trend.
To gain a clearer perspective, we examined Bitcoin’s on-chain data and found that its Network Value to Transactions (NVT) ratio has seen a decrease in recent days. This decrease suggests that Bitcoin may be undervalued and could potentially see a price increase.
Other metrics also suggest a bullish outlook. Analysis of CryptoQuant’s data reveals that Bitcoin’s exchange reserve is decreasing, indicating high buying pressure. The dominant buying sentiment is also reflected in the derivatives market, as evidenced by its green taker buy/sell ratio.
Despite these bullish indicators, several other metrics suggest a potential downturn for Bitcoin. There has been a shift of coins from long-term holders (LTHs) to short-term holders (STHs), potentially indicating a short-term price correction.
Bitcoin’s Binary CDD is currently red, suggesting that the movement of long-term holders in the past week has been higher than average. Its aSORP is also red, indicating that more investors are selling at a profit. This could signal a market top during a bull market.
Bitcoin’s daily chart also shows other bearish indicators, such as a bearish crossover displayed by the MACD. Both the Relative Strength Index (RSI) and Money Flow Index (MFI) have registered downticks, suggesting a possible price drop.
Despite these indicators, Bitcoin’s price remains above its 20-day simple moving average, as shown by the Bollinger Bands. This could potentially serve as support and help Bitcoin rebound.
