- The Bitcoin Rainbow Chart suggested that BTC was “still cheap.”
- Selling pressure on BTC increased, which could lead to problems.
Mood around Bitcoin (BTC) remained optimistic as the king of cryptocurrencies managed to trade well above the $61,000 mark. In fact, things could get even better considering the latest data.
This was the case because there was a high probability of a Golden Crossover, which could further drive up the price of the coin.
Bitcoin’s upcoming golden crossover
CoinMarketCaps Data revealed that BTC bulls dominated last week as the coin’s price rose by more than 7%. At the time of writing, BTC was trading at $64,003.47, with a market cap of over $1.2 trillion.
While the bulls were leading the market, Ali, a popular crypto analyst, published a tweet and revealed an interesting development. According to the tweet, BTC’s MVRV ratio and its 365-day simple moving average (SMA) were about to crossover.
If this happens, BTC could experience another bull run, which could push the price of the coin even higher.
Source: X
Therefore, AMBCrypto has done further research to find out the probability of the golden crossover. According to our analysis of data from Glassnode, the BTC price has finally reached its possible market bottom according to the Pi Cycle Top indicator.
In the event of a golden crossover, BTC could soon rise to its possible market high of $103,000.
Source: Glassnode
BTC’s path into the future
Our analysis of CryptoQuant’s Data showed that BTC reserves were increasing, which meant that selling pressure was increasing. Apart from that, active BTC addresses decreased by -39.25% compared to yesterday.
The total number of transactions has also decreased by -25.39% compared to yesterday. Both metrics suggest a pessimistic Bitcoin.
The derivatives market also looked quite pessimistic. This was evident from the red buy/sell ratio of the takers, which suggested that selling sentiment prevailed in the futures market.
Source: CryptoQuant
However, a look at the Bitcoin Rainbow Chart indicated that investors may still have time to accumulate more. The chart showed that the BTC price was in the “still cheap” zone at press time.
TWhat he meant was that investors could consider buying the coin before its price increases.
Source: Blockchaincenter
We then evaluated the coin’s daily chart to find out what the market indicators suggest. The Relative Strength Index (RSI) was moving sideways after a strong increase.
To read Bitcoin (BTC) Price Prediction 2024-25
BTC’s Chaikin Money Flow (CMF) also followed a similar trend, indicating a few days of slow movement.
In the event of a golden crossover, BTC could initially target $68,000 before setting its sights on its potential market high of $103,000. However, if the bears gain the upper hand, the coin could drop back to $54,000.
Source: TradingView
