- After a brief trip above $64,000, BTC fell below that level again.
- A few market indicators suggested that BTC was overbought.
After crossing $64,000 on September 23, Bitcoin [BTC] has fallen below that limit again. Meanwhile, an analyst revealed that buying pressure on the currency has increased. Will this development have a major impact on BTC’s price action?
People are buying Bitcoin again
After a long wait, BTC finally managed to cross the $64,000 mark for a short time. Although the price fell back below that level, the latest analysis suggested that buying pressure was high.
Ali, a popular crypto analyst, recently posted one tweet showing that investors are accumulating. This assessment was based on the wicks on BTC’s monthly price chart.
Source:
In fact, AMBCrypto’s analysis is CryptoQuant’s facts also found a similar trend. According to our analysis, Bitcoin’s net deposits on the exchanges were lower compared to the average of the past seven days. This clearly indicated that the buying pressure on the king coin has increased.
The miners were also willing to hold on to their coins as BTC’s Miners’ Position Index (MPI) was green. Furthermore, the Coinbase premium suggested that buying sentiment among US investors was strong. In general, an increase in purchasing pressure results in a price increase.
Source: CryptoQuant
Will the price of BTC rise again?
Although buying pressure on the coin was high, some statistics suggested a price correction. For example, our look at Glassnode’s data showed that BTC’s NVT ratio increased sharply.
A rise in the benchmark means an asset is overvalued, indicating a price correction.
Source: Glassnode
Apart from that, AMBCrypto found that Bitcoin’s Relative Strength Index (RSI) was in an overbought zone. The stochastics were also in the same zone, further increasing the chances of a price correction in the coming days.
Source: CryptoQuant
However, at the time of writing, Bitcoin fear and greed index was in the ‘fear zone’. When the measure reaches this level, it usually signals a price increase. That’s why AMBCrypto chose to check BTC’s daily chart to better understand what to expect from the king coin.
According to our analysis, BTC once again approached a crucial resistance at $64.1k. The good news was that the MACD showed a bullish advantage in the market. BTC’s Chaikin Money Flow (CMF) was also bullish as it moved north.
Read Bitcoin (BTC) price prediction 2024-25
These indicated that the chances of a successful break above resistance were likely. If that happens, BTC could soon target $68,000.
Nevertheless, in the event of a bearish trend reversal, investors may witness a drop in BTC to $57,000.
Source: TradingView