Bitcoin [BTC] investors are currently experiencing a bullish market as the price of the cryptocurrency has seen a positive uptick. This rise in price has prompted an analysis of BTC’s current market state and the sustainability of this new uptrend.
Bitcoin's Bullish Turn
On 23 August, Bitcoin crossed the $61k mark, triggering a bullish sentiment around the cryptocurrency. It is now approaching $65k. CoinMarketCap reports that its price has appreciated by over 5% in the last 24 hours. At the time of writing, BTC was trading at $64,276.61 with a market capitalization of over $1.26 trillion. This price hike has resulted in nearly 86% of BTC investors being in profit.
Future Targets for BTC
With the bull-bear market indicator turning bullish, other datasets were analyzed to determine the likelihood of Bitcoin remaining bullish. Analysis of Glassnode’s data revealed a sharp decline in BTC’s NVT ratio. A decrease in this metric indicates that the asset is undervalued, suggesting a potential price hike.
Current Metrics Analysis
CryptoQuant’s data showed that BTC’s net deposit on exchanges was low compared to the last seven-day average, indicating a decrease in selling pressure. However, some metrics turned bearish. For example, the aSORP was red, suggesting more investors were selling at a profit, which can indicate a market top in a bull market. Despite this, the daily chart of BTC was analyzed to better understand whether it can sustain the bull momentum. The technical indicator MACD displayed a bullish crossover, and its Chaikin Money Flow (CMF) also showed an uptick. If the bull rally continues, BTC might soon break the $65.2k resistance and approach $68k. However, if a bearish takeover occurs, Bitcoin might drop to $57k again.
Thus, Bitcoin's current bullish trend may continue, but investors should closely monitor market metrics for more accurate decision-making.
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