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- The price of BTC has risen marginally over the past 24 hours.
- Most market indicators and statistics seemed optimistic about Bitcoin.
Bitcoins [BTC] The price has been comfortably around or above the $51,000 mark for several days. Such consolidation phases are often followed by days of high volatility.
The latest data suggested that BTC could soon start another bull rally, which could help it reach new highs.
This looks bullish
According to CoinMarketCapBTC has risen by more than 1.4% in the past 24 hours. At the time of writing, the king of cryptos was trading at $51,715.96 with a market cap of over $1.02 trillion.
As the price of BTC surged towards $52k, Axel, a crypto analyst, posted a tweet highlighting a key BTC indicator. He used the SOPR ratio because the metric was approaching the level of 2.
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Historically, the price of BTC starts to rise when the benchmark reaches this level. To be precise, such episodes previously occurred in 2013, 2017 and 2021.
Also, AMBCrypto’s analysis of Glassnode’s data showed that BTC’s reserve risk was in the green zone at the time of writing.
When confidence is high and the price is low, there is an attractive risk or reward to invest (the reserve risk is low) because the chance of a bull rally is high.
Source: Glassnode
Apart from that, AMBCrypto reported rather how Bitcoin’s Network Value to Transactions (NVT) ratio registered a decline.
A declining NVT ratio implies that an asset is undervalued and increases the likelihood of a price increase.
Something in the short term?
AMBCrypto’s look at CryptoQuant’s facts revealed that BTC’s foreign exchange reserve fell, indicating reduced selling pressure. When selling pressure subsides, it increases the chance of a bull rally.
Another bullish indicator was the Chaikin Money Flow (CMF), which was also well above the neutral line. The indicator in question was the MACD, as it showed a bearish crossover.
Source: TradingView
Read Bitcoins [BTC] Price prediction 2024-25
With most indicators looking bullish, AMBCrypto then looked at BTC’s liquidation heatmap to find the possible resistance zones it could face if a bull rally were to translate into reality at all.
According to our analysis of Hyblock Capital’s chart, BTC could face strong resistance around $53,000. Therefore, it will be crucial for BTC to move above that level to support another bull rally.
Source: Hyblock Capital