The recent pullback in bitcoin price is thought to be key to triggering the next leg up to $50,000. On-chain metrics point to an extremely bullish outlook for BTC in the coming weeks. BTC price is trending upwards after the last spike on March 27. Analyst Akash Girimath, who studies the price movements of BTC, offers his weekly forecasts for the leading cryptocurrency.
Bitcoin price poised to rise
Bitcoin’s price has set three equal highs and four higher lows since Jan 13. Combining these swing points using trendlines shows the formation of an ascending triangle that predicts a 21 percent rise. BTC broke out of the ascending triangle setup on March 27 but stopped rising after reaching $48,238. This lack of momentum, mixed with underlying inefficiency, has caused BTC to fall even further. According to analyst Akash Girimath, investors can expect Bitcoin price to enjoy its gains as long as it stays above the $45,000 support level. According to Akash Girimath
Kriptokoin.com, whose analysis we have used before, also the rapid recovery of the annual opening from $ 46,198 will be the key to trigger the next rise. In this case, market participants can expect Bitcoin price to retest the psychological $50,000 level. However, Girimath states that if the upside continues further, BTC could run from $52,000 or the swing highs formed in late December 2021. In both cases, BTC’s rise seems limited around $53,000, while any movement beyond this level seems unlikely.
What do technical indicators point to in BTC?
Stating that technical indicators show an optimistic view for Bitcoin price, Girimath states that IntoTheBlock’s Global In/Out of the Money (GIOM) model also supports this argument. According to this index, the immediate resistance barrier from $45,887 to $48,410 looks relatively weak. Here, about 3.25 million addresses that bought about 2 million BTC appear as “Out of Money”. Therefore, a significant increase in buying pressure is required to break through this hurdle. Doing so could open the way to $50,000 or more. The MVRV pattern turned positive as BTC price moved to $48,000. Even if this index is above the zero line, historical data shows that 365-day MVRV peaked at roughly 22%, suggesting that there is still more bullishness yet to be seen for Bitcoin price.
The category of investors holding 10,000 to 100,000 BTC increased their holdings from 10.26% to 11.26%, while those holding 100,000 to 1,000,000 BTC increased from 3.03% to 3.48%. This development points out how much the institutions are on the rise in the price of Bitcoin. On the other hand, if the $44,418 support level is breached in the price of the leading cryptocurrency, the ascending triangle view may fail. This move signals a retest of the immediate support level at $42,076. According to Girimath, if BTC price produces a daily candlestick chart near $42,076, it will invalidate the bullish thesis and send the major crypto down to the lower border of the ascending triangle at roughly $37,000. In a highly bearish situation, a break of the $35,000 support base could cause Bitcoin to drop to $30,000.
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