- BTC has risen by more than 9% in the past seven days.
- A few indicators looked bullish, but the rest suggested otherwise.
Bitcoin [BTC] surprised investors again when the price crossed the $51,000 mark after falling below $49,000 a few days ago. While this already looked quite optimistic, the best part could be in store for later as new data suggested BTC could pump further.
So, to see what might happen next, AMBCrypto checked BTC’s statistics.
What does a Bitcoin ATH suggest?
Bitcoin has shown commendable performance over the past seven days as its price rose above $51,000. According to CoinMarketCapBTC has risen almost 10% in the past seven days.
At the time of writing, it was trading at $51,781.49 with a market cap of over $1 trillion.
The good news was that, according to IntoTheBlock’s prediction, the king of crypto could hit an all-time high within six months.
Source:
To be precise, the probability of BTC hitting an ATH was 85%, according to the analytics platform’s prediction. To see if that’s possible, AMBCrypto looked at Bitcoin’s on-chain metrics.
Our analysis showed that BTC’s Network Value to Transactions (NVT) ratio fell last week. A decline in the measure means an asset is undervalued, indicating an increase in price.
Source: Glassnode
A few other metrics also looked quite bullish for BTC. For example, BTC’s funding rate was green. CryptoQuant’s facts also revealed that Bitcoin’s buy/sell ratio was positive, indicating that buying sentiment was dominant in the market.
Apart from that, the king of cryptos is also expecting its next halving in a few months. Historically, BTC has always reached a new ATH a few months after the halving. Therefore, considering these indicators, BTC hitting new highs seemed high.
Not everything is beautiful
While the above metrics were bullish, some other metrics told a different story. For example, BTC’s aSORP was red, meaning more investors were selling at a profit.
In the middle of a bull market, this could indicate a market top. The binary CDD also followed a similar path, indicating that long-term holders’ moves over the past seven days were higher than the average, which was bearish.
Source: CryptoQuant
Moreover, BTCs Fear and Greed Index had a reading of 76 at the time of writing, meaning the market was in a state of ‘greed’.
When the metric reaches that level, it indicates a possible price correction. That’s why AMBCrypto checked Bitcoin’s daily chart to find out if a downtrend is coming.
Read Bitcoins [BTC] Price prediction 2024-25
According to our analysis, BTC’s Relative Strength Index (RSI) was in the overbought zone. This could increase selling pressure on the coin and in turn lower the value of the coin in the coming days.
But nothing can be said for sure as the MACD remained in favor of the buyers as it showed a bullish edge in the market.
Source: TradingView