- BTC’s NVT ratio indicated that it was undervalued on the charts
- A number of numbers were bearish, indicating a decline towards $57k
Bitcoin [BTC] Investors had a blast at the time of writing as the king of cryptos’ price action turned bullish once again. BTC’s latest price surge also pushed a key indicator into the bull zone. Therefore, it is worth taking a closer look at the current state of the cryptocurrency to see how long bulls can sustain this new uptrend.
Bitcoin turns bullish again
Bitcoin breached the $61,000 level on August 23 and sentiment around the coin has been bullish ever since. In fact, the crypto was quickly approaching $65,000. According to CoinMarketCapFor example, the price has increased by more than 5% in the last 24 hours.
At the time of writing, BTC was trading at $64,276.61 with a market cap of over $1.26 trillion. Thanks to this price increase, almost 86% of BTC investors made a profit.
Source: IntoTheBlock
However, that’s not all.
Ali, a popular crypto analyst, recently shared one tweet which shows a bullish development. According to the same information, BTC’s bull-bear market indicator has been fluctuating between bearish and bullish since early August. Now the price has become bullish again.
This means that BTC’s latest upswing could continue.
Source:
BTC’s upcoming objectives
Since the aforementioned indicator turned bullish, AMBCrypto checked other data sets to find out how likely the King Coin is to remain bullish.
Our analysis of Glassnode’s data showed that BTC’s NVT ratio registered a sharp decline. A decline in this measure means an asset is undervalued, indicating a price increase on the horizon.
Source: Glassnode
Furthermore, according to CryptoQuant’s factsBTC’s net deposits on the exchanges were low compared to the average of the past seven days, indicating a drop in selling pressure. Apart from this, AMBCrypto reported earlier that the NASDAQ formed a bearish divergence pattern. This means that a revival of selling pressure could see liquidity flow from stocks to Bitcoin.
Nevertheless, some metrics turned bearish. For example, the aSORP was red, meaning more investors were selling at a profit. In the middle of a bull market, this could indicate a market top.
Also, the NULP pointed out that investors are in a faith phase where they are currently in a state of high unrealized gains.
Source: CryptoQuant
Therefore, AMBCrypto checked the daily chart of BTC to better understand whether it can maintain the bull momentum. The technical indicator MACD showed a bullish crossover. The Chaikin Money Flow (CMF) also registered a revival.
Read Bitcoins [BTC] Price prediction 2024-25
If the bull rally continues, BTC could soon move above the $65.2k resistance and then approach $68k. However, in the event of a bearish takeover, Bitcoin could fall back to $57,000.