All reasons why Bitcoin investors should celebrate
Many investors are worried about Bitcoin’s recent sideways move, hoping for a return to the impressive performance seen in Q1. However, according to CryptoQuant’s analysis, several factors point to a potential increase in the price. The burning question is whether Bitcoin can finally break free from its monotonous trajectory.
MAC_D, renowned author and analyst at CryptoQuant, highlights key indicators indicating an upcoming uptrend. Examining various on-chain cycle metrics such as MVRV and SORP reveals that the current interval represents a recession—the recovery stage. As a result, BTC’s long-term trajectory is tilted towards the positive.
Additionally, Bitcoin’s intrinsic value has increased despite the recent trend of adjustments temporarily resulting from network overheating. The overall hashrate and difficulty of BTC reveals a thriving blockchain ecosystem. Additionally, the coin’s price is closely aligned with BTC’s realized price range of 1 million to 3 million, known as the UTXO Age Bands, which have historically been important support levels during recoveries. These factors increase the probability of an upcoming price increase.
To understand the current situation comprehensively, it is necessary to investigate other BTC on-chain metrics to determine whether a bullish rally is imminent. According to CryptoQuant analysis, BTC exchange reserves are steadily increasing, indicating increasing selling pressure. Furthermore, BTC’s aSORP is showing a red trend, indicating that more investors are selling at a profit. However, currently, the buy/sell ratio of BTC takers indicates market dominance of buying sentiment. In addition, favorable funding levels contribute to the positive outlook.
Surprisingly, the BTC fear and greed index is currently in neutral territory. Because of this ambiguity, the price of BTC can swing in either direction in the short term. Meanwhile, data from the Exponential Moving Average (EMA) Ribbon shows the gap is shrinking between the 20-day and 55-day EMA, implying a bullish cross is more likely. BTC’s Chaikin Money Flow (CMF) and Money Flow Index (MFI) are increasing, while the Relative Strength Index (RSI) is comfortably above neutral levels, solidifying the possibility of a price increase.
BTC has gained 1.7% in the last 24 hours, taking its current trading price to $27,331.54, with a market cap of $529 billion. With the convergence of positive indicators and market dynamics, investors are anticipating a significant spike in the BTC price. Only time will tell if BTC will finally break free from its long-term sideways trend and start a new bullish trend.