- The price of Bitcoin has risen by more than 4% in the past 24 hours
- Several statistics indicated that BTC was overbought on the charts
Bitcoin [BTC], as the top cryptocurrency on the market, led the bull market last week as its price rose significantly on the charts. But that’s not all, as the data reveals another interesting update, one that could trigger another price hike.
However, nothing can be said with certainty, especially since another indicator at the time of writing seemed to suggest otherwise.
Bitcoin’s market dilemma
The price of the king of crypto has risen comfortably by more than 14% in the last seven days. This was also the case over the past 24 hours, with the value of the coin rising by more than 4%. At the time of writing, BTC was trading at $66,616.52 with a market cap of over $1.3 trillion.
Ali, a popular crypto analyst, recently shared one tweet however, points to a bullish development. According to the same, the crypto has once again broken above a resistance level. This clearly indicated that the price of BTC could rise further in the coming days.
However, not everything seemed to work in BTC’s favor. For example, the TD sequential indicator gave a sell signal on BTC’s daily chart, according to another tweet from Ali.
If true, BTC’s rally may soon come to an end. Nevertheless, the tweet also mentioned that if BTC manages to maintain the uptrend and climbs above $67.5k, the sell signal will be invalid.
Where is BTC going?
Since the aforementioned datasets looked quite ambiguous, AMBCrypto took a closer look at the king of crypto’s stats to better understand what to expect.
According to Glassnode data, BTC’s NVT ratio declined on the charts. Typically, a decline in the benchmark means an asset is undervalued, which often results in price increases later.
Source: Glassnode
An additional look at CryptoQuant’s facts also revealed a few other bullish metrics. For example, the net deposit of BTC on the exchanges was low compared to the average of the past seven days – a sign that buying pressure was high. The binary CDD showed that long-term holders’ moves over the past seven days were lower than average. They have a motive to hold on to their coins.
However, other metrics and indicators were concerning. For example, both Bitcoin’s Relative Strength Index (RSI) and Stochastic were in overbought zones.
This indicated that selling pressure could rise soon, which would in turn put an end to BTC’s rally on the charts.
Source: CryptoQuant
At the time of writing, the cryptos fear and greed index had a score of 69%, meaning the market was in a ‘greed’ phase. When the measure reaches that level, it indicates that the likelihood of a price correction is high.
Read Bitcoins [BTC] Price prediction 2024-25
Therefore, we next checked the daily chart of BTC. We found that both the Money Flow Index (MFI) and the Chaikin Money Flow (CMF) showed a decline, indicating that a price correction would occur soon.
On the contrary, the MACD supported the buyers as it showed a bullish upper hand.
Source: TradingView