Bitcoin (BTC) is back above $60,000 this week, but many investors are still unsure about the cryptocurrency. The following analysis seeks to predict what comes next for the asset.
After falling more than 10% last week, reaching a low of $59.8K, BTC managed to recover, reaching a high above $64K. However, the asset was unable to maintain this momentum, falling 4% from its local high.
The CryptoFear & Greed Index, which measures the overall market sentiment towards cryptocurrency, is currently at 49 (neutral). This shows that investors and traders are indecisive about the future of cryptocurrency.
Based on this, Bitcoin on-chain data can indicate which way the future price trend will go.
Bitcoin in consolidation?
Fernando Pereira, a cryptocurrency analyst at Bitget, notes that Bitcoin has shown signs of stabilization after the sharp declines of the last week. In this sense, he seems optimistic about the future trend:
Although we are still in a consolidation scenario, key indicators suggest that selling pressure is easing and that a recovery may be on the horizon.
Analyzing the market liquidity, as highlighted in the image below, Pereira concluded that the main support level to watch is at $60.3K, while the resistance that investors and traders should target is at $67K. These levels have $1.8 billion and $1.4 billion in liquidity, respectively.
Another indicator that reinforces optimism is Trend Accumulation. It shows that market demand for BTC, especially from short-term investors, is increasing.
Warning sign
On the other hand, MVRV is a warning sign for those who already own or are considering investing in Bitcoin. The on-chain indicator, which compares an asset’s market value with its realized value, is close to a historical profit-taking zone, as Pereira notes.
Therefore, the current moment, despite its potential, may pose certain risks for those who want to enter into operations with BTC. However, for those who have already purchased the asset, the best option according to the analyst is to “surf the movement and be aware of support and resistance levels to defend their positions and take profits”.
The article Is it a good time to buy Bitcoin (BTC)? – On-chain analysis appeared first on BeInCrypto Brazil.
