Key Points
- Bitcoin鈥檚 price action has turned bullish again, with its NVT ratio indicating undervaluation.
- Despite some bearish metrics, BTC鈥檚 bull-bear market indicator has switched back to bullish.
Bitcoin [BTC] investors are currently experiencing a bullish market as the price of the cryptocurrency has seen a positive uptick. This rise in price has pushed a key indicator into the bull zone, prompting a closer analysis of BTC鈥檚 current market state and the sustainability of this new uptrend.
Bitcoin鈥檚 Bullish Turn
On 23 August, Bitcoin crossed the $61k mark, triggering a bullish sentiment around the cryptocurrency. It is now approaching $65k. CoinMarketCap reports that its price has appreciated by over 5% in the last 24 hours.
At the time of writing, BTC was trading at $64,276.61 with a market capitalization of over $1.26 trillion. This price hike has resulted in nearly 86% of BTC investors being in profit.
Crypto analyst Ali recently shared a tweet revealing a bullish development. The BTC bull-bear market indicator has been oscillating between bearish and bullish since early August, but it has now switched back to bullish. This suggests that BTC鈥檚 current upswing could continue.
Future Targets for BTC
With the bull-bear market indicator turning bullish, other datasets were analyzed to determine the likelihood of Bitcoin remaining bullish. Analysis of Glassnode鈥檚 data revealed a sharp decline in BTC鈥檚 NVT ratio. A decrease in this metric indicates that the asset is undervalued, suggesting a potential price hike.
CryptoQuant鈥檚 data showed that BTC鈥檚 net deposit on exchanges was low compared to the last seven-day average, indicating a decrease in selling pressure. However, some metrics turned bearish. For example, the aSORP was red, suggesting more investors were selling at a profit, which can indicate a market top in a bull market.
Despite this, the daily chart of BTC was analyzed to better understand whether it can sustain the bull momentum. The technical indicator MACD displayed a bullish crossover, and its Chaikin Money Flow (CMF) also showed an uptick.
If the bull rally continues, BTC might soon break the $65.2k resistance and approach $68k. However, if a bearish takeover occurs, Bitcoin might drop to $57k again.
