According to Analyst Akash Girimath, Bitcoin is revisiting important support before flying to $60,000. Bitcoin price is dipping below the 50-day SMA as it sees a retest of the $36,398 to $38,895 demand zone. Despite the drop, long-term investors are on the rise as BTC supply on exchanges hits a three-year low. A break of the $34,752 support level will invalidate the bullish argument. Details of analyst Girimath’s predictions are on Kriptokoin.com.
Bitcoin to revisit important support
Bitcoin price is currently returning after failing to break through a thick resistance barrier. Looking forward, traders can expect the pullback to bounce off a key support level consolidation and breathe new life into the uptrend. Bitcoin price surged 40% between January 24 and February 10, breaking the weekly supply zone from $45,550 to $51,860. This rise briefly paused and created a demand zone ranging from $36,398 to $38,895. The recent rejection of the weekly supply will drop BTC into the demand zone, allowing the sideline buyers to take the next step. Also, the presence of the weekly support level at $39,481 makes this consolidation a highly probable reversal area.
The emerging uptrend needs to cut the weekly supply and produce a daily candlestick above $52,000 to remove any traces of the bearish outlook. This move will also set a higher top and reveal the start of an uptrend. In this scenario, investors can expect Bitcoin price to reach the next significant level at $60,000. IntoTheBlock’s Global In/Out of the Money (GIOM) model supports the technically derived bullish view. This on-chain index shows that the immediate support is relatively stronger than the resistance barrier, indicating that a bullish direction is just around the corner.
Therefore, a bounce around $37,000 could push BTC to $44,049, where opportunities have run out for the roughly 939,080 addresses that bought 495,210 BTC. As this underwater investors space is relatively weak, market participants can expect the leading crypto to break through it and reach the $52,000 barrier. It is the supply metric on exchanges that further describes the rise of investors for the Bitcoin price. This on-chain indicator hit a three-year low at 2.05 million, showing that long-term holders are as optimistic as ever about BTC price performance. Since 2022, the number of BTC held on centralized exchanges has decreased by 190,000, showing the trust among these holders.
The asset-adjusted dormant flow indicator is used to measure BTC’s primary trend and assess whether it is bullish or bearish. A drop to the green band indicates a reversal for BTC, and the red band indicates cycle highs. This basic index is the current market capitalization divided by the annualized USD dormancy value. Dormancy refers to the average number of days that each traded coin is dormant or dormant, and it is an indicator of the spending pattern of the market. The on-chain measurement bottomed out at 204,1037 on Jan. 24, a level last seen in 2015, showing that BTC’s downside is limited and a reversal is likely.
BTC asset-adjusted dormant flow
Additionally, miners also seem to be in an uptrend in Bitcoin price, as indicated by the Miners’ Position Index (MPI). This on-chain index is the ratio of total miner output to the one-year moving average of miner output. For roughly a year, this metric has fallen into negative territory, showing that miners are not sending their BTC to exchanges, they are bullish, effectively reducing overall sell-side liquidity. All in all, Bitcoin price looks optimistic from a long-term perspective; However, downgrade threats are still not obsolete. As BTC approaches the daily demand zone, which stretches from $36,398 to $38,895, a selloff is likely.
If the potential increase in selling pressure forces BTC to produce a daily candlestick near $34,752, it will create a lower low and invalidate the bullish thesis. With BTC not forming a higher high on the daily chart, rates are likely to shift in favor of the bears and trigger another drop. In this case, investors can expect BTC to revisit the $29,100 support level and gather liquidity below it. Doing so will effectively remove selling pressure and indicate that a complete reversal is likely.
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