- BTC’s NVT ratio showed it was undervalued on the charts
- Some metrics were pessimistic and suggested a drop to $57,000.
Bitcoin (BTC) At press time, investors were having a lot of fun as the price of the king of cryptocurrencies turned bullish again. The recent BTC price surge also pushed a key indicator into the bull zone, so it’s worth taking a closer look at the current state of the cryptocurrency to see how long the bulls can sustain this new uptrend.
Bitcoin becomes bullish again
Bitcoin crossed the $61,000 mark on August 23 and since then the sentiment around the coin has been optimistic. In fact, the cryptocurrency quickly approached the $65,000 mark. According to CoinMarketCapFor example, its price has increased by more than 5% in the last 24 hours.
At the time of writing, BTC was trading at $64,276.61, with a market cap of over $1.26 trillion. Thanks to this price increase, almost 86% of BTC investors made a profit.
Source: IntoTheBlock
But that’s not all.
Ali, a popular crypto analyst, recently shared a tweet This shows a bullish development. Accordingly, the BTC bull-bear market indicator has been fluctuating between bearish and bullish since the beginning of August. Now it has switched back to bullish.
This means that BTC’s recent upswing could continue.
Source: X
BTC’s next targets
Since the above indicator turned bullish, AMBCrypto checked other data sets to find out how likely it is that the king coin will remain bullish.
Our analysis of data from Glassnode revealed that BTC’s NVT ratio saw a sharp decline. A drop in this metric means that an asset is undervalued, indicating an impending price increase.
Source: Glassnode
In addition, according to CryptoQuants DataThe net deposit of BTC on exchanges was low compared to the last seven-day average, indicating a decrease in selling pressure. Apart from that, AMBCrypto reported previously that the NASDAQ has formed a bearish divergence pattern. This means that renewed selling pressure could lead to a flow of liquidity from stocks to Bitcoin.
However, some metrics turned bearish. For example, the aSORP was red, which meant that more investors were selling at a profit. In the middle of a bull market, this can indicate a market top.
In addition, the NULP pointed out that investors are in a phase of belief where they are currently making high unrealized gains.
Source: CryptoQuant
Therefore, AMBCrypto checked BTC’s daily chart to better understand whether it can sustain the bullish momentum. The technical indicator MACD showed a bullish crossover. Its Chaikin Money Flow (CMF) also recorded an uptrend.
To read Bitcoin (BTC) Price Prediction 2024-25
If the bull rally continues, BTC could soon surpass the $65,200 resistance and approach the $68,000 mark next. However, in case of a bearish takeover, Bitcoin could drop back to $57,000.
