- The price of BTC was close to the realized price of 1 million to 3 million BTC – UTXO Age Bands.
- The king coin is up 1.7% in the past 24 hours and was trading at $27,331.54 at the time of going to press.
From Bitcoin [BTC] price has been on a sideways path for quite some time as volatility remained low. This sparked fear among many investors as they expected BTC to continue its Q1 performance into Q2.
However, CryptoQuant’s recent analysis pointed to quite a few factors indicating that a price hike could be in the works. So the most pertinent question here is, can BTC finally break its side path now?
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Bitcoin is resting before a bull meeting
MAC_D, an author and analyst at CryptoQuant, pointed to quite a few factors suggesting an uptrend. A look at various on-chain cycle metrics such as MVRV and SORP revealed that the current interval was a recession, meaning a recovery phase. Therefore, in the long run, BTCs price can be seen as moving more upwards.
Source: CryptoQuant
In addition, growth was also noted in terms of Bitcoin’s intrinsic value. According to the analysis, there has been a recent adjustment trend, but it seems to be a short-term phenomenon due to network overheating.
Overall, a look at BTC’s hashrate and difficulty suggested that the blockchain was actually growing. The analysis also mentioned that the price of the coin was close BTC‘s 1 million to 3 million realized price – UTXO Age Bands.
It was noted that during the last recovery period, the average unit price of these short-term holders acted as a critical support line for a price correction. This increased the chance of a price increase in the coming days.
Source: CryptoQuant
Should investors get excited yet?
To better understand the ground scenario, let’s take a look at BTC’s other on-chain metrics to see if BTC is preparing for a bull rally.
According to CryptoQuant, BTC’s exchange reserve increased, suggesting that the coin was under selling pressure. BTC’s aSORP was also red, showing that more investors were selling at a profit.
Source: CryptoQuant
However, at the time of writing, BTC’s buy/sell ratio was green, indicating that buying sentiment was dominant in the market. Moreover, BTCthe funding rate was also good, which looked encouraging.
Interestingly enough, BTC’s fear and greed index was in a neutral position. This was ambiguous, as it suggested that the price of BTC could go either way in the near term.
Source: Alternative
Read From Bitcoin [BTC] Price prediction 2023-24
Market indicators are bullish
In addition, data from the Exponential Moving Average (EMA) Ribbon showed that the distance between the 20-day and the 55-day EMA decreased, increasing the likelihood of a bullish crossover.
BTCChaikin’s Money Flow (CMF) also registered an increase, as did its Money Flow Index (MFI). The Relative Strength Index (RSI) was well above the neutral limit, further increasing the chance of a price increase.
In the past 24 hours, BTC is up more than 1.7%. At the time of writing, it was trade at $27,331.54 with a market cap of $529 billion.
Source: TradingView