The fact that Bitcoin (BTC) is giving new bullish signals in short time frames raises hopes among the bulls that it is at the end of the correction phase. According to crypto analysts, the buyers could really be on the winning side this time.
Bitcoin analysts predict the decline will end in weeks
BTC price made a strong breakout on May 18 as the bulls raised their expectations. Data from TradingView shows that the price has climbed to $27,400 on Bitstamp. The price thus turned green around 3.5% over the last 24 hours. Skew, the popular crypto analyst who examined the order books of exchanges, was hopeful about the continuation of the rise.
In part of his technical analysis, he summarized the current moves by saying, “The price pulled down the inhibitory swing with enough liquidity to push higher.” Skew adds that while macro conditions are causing friction for BTC price performance in general, Tether should be a “positive catalyst,” promising regular BTC purchases.
Whales support BTC bullish
On-chain data source Material Indicators tracks movement in the Binance order book. Accordingly, the latest price increase coincided with the volume increase from the whale class.
If you've been following for more than a minute, you've seen me say that Purple whales have historically had the most influence over Bitcoin PA. Here's a text book illustration of that on the W chart.
Learn more about FireCharts here https://t.co/cLxkExkPmX pic.twitter.com/1I5JKGstCt
— Material Indicators (@MI_Algos) May 17, 2023
As always, not everyone is convinced of the longevity of the recent BTC rally. Among them was TraderSZ, who started the day by closing his long BTC position.
“Imagine the leap is over,” he said in his analysis, predicting a bearish turn.
Bottom ‘could be in’ for Bitcoin price correction
Meanwhile, another popular trader, Credible, has expressed a belief that a more significant upside reversal could come within the next month.
Aging beautifully. This is exactly what we wanted to see here. Chop has lasted for more than a few weeks (which is good- the longer the better) but this correction may soon be coming to an end.
How much longer till expansion and is the bottom in?
25k's tested, liq below us… https://t.co/0TpNjLuCDv pic.twitter.com/15tDH62aGo
— CrediBULL Crypto (@CredibleCrypto) May 17, 2023
Credible shares two charts with notable trend lines. He says the top should stay as support and BTC/USD should rise later. Describing the character of the move as “absolutely explosive”, he continues, “I hope it will mean less than 30 days for the next upward move to begin.”
On-chain metrics show bear to bull transition
Reports from crypto analytics firm Glassnode have revealed metrics that show bulls taking over Bitcoin.
Glassnode’s ‘Bitcoin Bear Survival’ signal combines eight different metrics that analyze four key factors. These;
- Whether the market is trading above the basic price patterns;
- Whether there is any increase in on-chain activities;
- Whether the market is profiting and level long-term bearer supply dominance.
All eight metrics of the signal are currently bullish for Bitcoin. Negentropic, one of the co-founders of Glassnode, also states that the momentum is currently shifting from meme coins to Tier 2 protocols and artificial intelligence (AI) projects.
The crypto analyst also notes that Bitcoin is currently “sloping upwards but lacks momentum.” The leader says demand for crypto should start.
Santiment analysts did not ignore negative indicators
Santiment, another on-chain analytics platform that issued a serious warning about BTC today, reports that Bitcoin witnessed a significant drop in network usage and engagement in May.
For the first time since July 2021, less than 800,000 Bitcoin addresses are transacted on the network every day. This drop in network activity was in line with Bitcoin and a broad-based correction affecting the market.
https://twitter.com/santimentfeed/status/1658972803872481280
As we quoted as Kriptokoin.com, the BRC-20 standard, which has become popular recently, gave the Bitcoin network a hard time.
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