Bitcoin price is trading in a region that is likely to result in a rapid rally to key levels. On-chain metrics also indicate the possibility of an increase in buying pressure, which could trigger a full-blown bull run if certain hurdles are overcome.
Bitcoin price and bullish techniques
Bitcoin price has fallen by 17% since April 4 and currently bounces off the 200-day SMA at $39,506. A close from this level could trigger BTC to overcome the 50-day, 100-day SMAs and a full retracement to the annual open at $46,198. As such, BTC’s rise may be capped at the annual open, but in some cases, the major crypto could retest the 200-day SMA at $48,169.
The total number of BTC held on exchanges has dropped to 1.91 million, a level last seen on December 6, 2018, showing that investors are confident in the performance of the Bitcoin price.
Since March 2022, around 100,000 BTC have left the exchange. Moreover, only five times in BTC’s ten-year history have this type of exit been witnessed. All this suggests that investors are betting on the better performance of the big crypto over a longer time frame.
Revealing a similar bullish outlook for bitcoin price is the supply distribution by address balance. This index shows a net increase in whales holding between 100,000 and 1,000,000 BTC, from 2.93% in December 2021 to 3.47% as of this writing.
Analysts predict the next levels of BTC price
On-chain analyst ‘TechDev’, whose analyzes we shared with Kriptokoin.com, said that the market has been in the process of retreat for a year and says an impulsiveness is likely.
All in all, Bitcoin price seems perfectly positioned to start a major bull rally and on-chain indicators are actively supporting this view. However, a daily candle close below the $34,752 support level will allow BTC to continue falling. Such a development could trigger a crash to seek stable support levels. As such, investors need to be aware of sell stops below the $30,000 level as BTC could drop further to sweep away that liquidity before triggering a bull rally in 2022.
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