Bitcoin ‘Cheap’ Despite Bullish Sentiment; Golden Cross May Drive Price Up
The Essentials in Brief
The Bitcoin Rainbow Chart suggests that Bitcoin (BTC) is currently still classified as “cheap”. Despite increasing selling pressure and an overall bullish sentiment, BTC may be facing a golden cross that could further drive up the price. A look at various market indicators and analyses shows a mixed picture of BTC’s future price development.
Bitcoin’s Upcoming Golden Cross
Data from CoinMarketCap shows that Bitcoin recorded a price increase of over 7% in the last week, indicating strong bullish momentum. A tweet from a well-known crypto analyst suggests that the ratio of BTC’s MVRV and its 365-day Simple Moving Average (SMA) is on the verge of a cross. Should this cross occur, it could lead to another bull run, potentially driving BTC’s price to new heights.
Pressure and Momentum in the Market
Analyses from CryptoQuant show that the reserve stock of BTC on exchanges is increasing, indicating rising selling pressure. Also, the number of active addresses and transactions is declining, which could be interpreted as a bearish signal. The derivatives market also shows a selling sentiment, as indicated by the red Taker Buy/Sell ratio. Despite these indicators, the Bitcoin Rainbow Chart suggests that it may not be too late for investors to accumulate BTC, as the price is currently in the “cheap” range.
Technical Analysis and Price Forecast
The technical analysis of the daily chart shows that Bitcoin’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) are trending sideways after a strong rise. This could indicate some slower days ahead. If a golden cross occurs, BTC could initially target $68,000 before potentially rising to as high as $103,000. However, if the bears gain the upper hand, the price could fall back to $54,000.
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Our Assessment
The current market situation of Bitcoin shows a mix of bullish and bearish signals. While the Bitcoin Rainbow Chart and the possibility of a golden cross point to significant upside potential, the increasing selling pressure and declining activity indicators urge caution. Investors should closely monitor these developments and base their decisions on a thorough analysis of the market. As always, it is important to manage risk and diversify investments.
Sources: AMBCrypto, CoinMarketCap, CryptoQuant, Glassnode, Blockchaincenter, TradingView
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| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Price | $76,408.00 |
| 24h % | -0.19 % |
| 7d % | 10.44 % |
| 30d % | 25.83 % |
| 60d % | 34.09 % |
| 1y % | 101.69 % |
| Market Cap | $1,510,512,906,961.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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