Key Points
- Bitcoin’s golden crossover could potentially push its price upwards.
- Despite increasing selling pressure, Bitcoin remains in the “still cheap” zone according to the Bitcoin Rainbow Chart.
Bitcoin [BTC] continues to demonstrate bullish tendencies, maintaining a trading value above $61k. Current data suggests potential for further growth.
Potential Golden Crossover
BTC experienced a surge of over 7% last week, according to CoinMarketCap. At the time of writing, Bitcoin was trading at $64,003.47 with a market capitalization exceeding $1.2 trillion.
A tweet by a well-known crypto analyst, Ali, highlighted the possibility of a golden crossover between BTC’s MVRV ratio and its 365-day simple moving average (SMA). If this occurs, it could trigger another bull rally for Bitcoin, pushing its price even higher.
Market Analysis
Investigations into the likelihood of the golden crossover, based on Glassnode’s data, revealed that Bitcoin’s price may have reached its potential market bottom as per the Pi Cycle Top indicator. If a golden crossover does occur, Bitcoin could rally towards a potential market top of $103k.
However, analysis of CryptoQuant’s data shows an increase in BTC’s exchange reserve, indicating rising selling pressure. Additionally, Bitcoin’s active addresses and total number of transactions have decreased, suggesting a bearish outlook.
The derivatives market also appears bearish, with a dominant selling sentiment in the futures market. Despite this, the Bitcoin Rainbow Chart suggests that Bitcoin’s price is currently in the “still cheap” zone, potentially encouraging further investment.
Future Predictions
Examination of Bitcoin’s daily chart and market indicators, such as the Relative Strength Index (RSI) and Chaikin Money Flow (CMF), suggest a period of slow movement. If a golden crossover does occur, Bitcoin could initially target $68k before aiming for a potential market top of $103k. Conversely, if bearish trends dominate, Bitcoin could drop back to $54k.
