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Posted:
- A key BTC metric suggested that the coin’s price was overvalued.
- Nevertheless, some market indicators remained bullish on BTC.
On December 23, Caleb Franzen, a popular crypto analyst, highlighted that Bitcoin [BTC] the price had fallen below a key support level. However, the coin recovered quickly as it reached the red support zone overnight.
Short-term #Bitcoin price action still follows this structure.
One concern is that we have broken below the rising support trendline (and perhaps turned it into resistance?).
Nevertheless, we recovered to the red support zone overnight. pic.twitter.com/WnWCeyrt5t
— Caleb Franzen (@CalebFranzen) December 23, 2023
In the meantime, other data sets showed that we were about to witness a bull rally. Will BTC be able to repeat history and start 2024 with a bull rally?
Is Bitcoin Preparing for a Bull Rally?
While the price of BTC recovered, another analysis suggested that we had exited the reaccumulation phase. This indicated that BTC could be preparing for a bull rally in the coming weeks, increasing the chances of BTC’s price chart turning green in 2024.
#Bitcoin doesn’t go to $12k pic.twitter.com/KNu37krpq9
— Mags (@thescalpingpro) December 23, 2023
According to CoinMarketCapBTC has risen more than 3% in the past seven days. At the time of writing, BTC was trading at $43,602.18 with a market cap of over $853 billion.
To check if the accumulation has come to an end, AMBCrypto looked at Santiment’s data. We found that both the on-exchange and off-exchange supply of BTC were closely linked.
This meant that BTC had neither selling pressure nor buying pressure high at the time of writing.
Source: Santiment
From CryptoQuantBTC’s binary CDD turned green, meaning that long-term holders’ moves over the past seven days were lower than average.
However, Bitcoin’s aSORP turned red, meaning more investors sold at a profit and potentially set a market top.
Source: CryptoQuant
Look forward to something
While the buying and selling pressures were nominal BitcoinAMBCrypto checked other metrics to see if the king coin could initiate a bull rally in the coming week.
Our analysis showed that even though the price of BTC moved slightly sideways, the NVT ratio rose significantly.
High values of the NVT ratio have historically coincided with market tops and periods of overvaluation, indicating that we may be witnessing a price correction.
Furthermore, BTC’s Fear and Greed Index had a value of 70 at the time of writing. When the measure reaches that level, it means the market is in a ‘greed’ phase, further increasing the likelihood of a price correction.
Source: Glassnode
Read Bitcoins [BTC] Price prediction 2023-24
Bitcoin’s Relative Strength Index (RSI) followed a sideways path, which looked worrying. Nevertheless, the MACD showed the possibility of a bullish crossover.
BTCThe Money Flow Index (MFI) also recorded a rise, raising the likelihood of a northward price move in the coming days.
Source: TradingView