- The price of Bitcoin has risen almost 5% since last weekend.
- There was a buy signal from on-chain metrics, but there was also concern about “artificial demand.”
Bitcoin [BTC] has risen by 4.5% since Saturday, June 29. In addition, the support zone that extended until March 1 was retested and defended as support. Additionally, the lows of the last three months’ price action were also kept.
Source: BTC/USDT on TradingView
At the time of writing, the $63.3k midpoint served as resistance. The technical indicators showed that a bullish reversal on the higher horizons was not yet in sight.
However, in the lower ranges, last week’s bearish sentiment and lopsided futures market meant that liquidation levels could be pursued further north.
The question of why Bitcoin is rising is partially answered there, but there are also other factors at play. Will the bulls push prices up?
The statistics indicate network-wide accumulation, but also point to problems
Source: Santiment
The 30-day MVRV ratio was negative, meaning short-term holders ran out of money. However, over the past six weeks the average coin age has moved noticeably higher. This was a positive combination.
It indicated accumulation among holders and at the same time indicated an undervalued asset. Together, this marks a near-term buying opportunity. This could spark a rally for the king of crypto.
However, the Network Value to Transactions Ratio, calculated here based on circulation, showed that Bitcoin was overvalued compared to the amount of BTC traded on-chain daily.
This could bother the bulls, but is overshadowed by the combination of the MVRV and the average coin age.
The liquidity cluster beckons BTC upwards
Source: Hyblok
The liquidation cluster at $55,000 was not tested as the bulls kept the price from falling below the psychological support at $60,000. Not every high liquidity zone needs to be tested. If the price continues to move higher, the $73k zone will be the next area of interest for traders.
The path forward is not easy for the bulls. A tweet from head of research at CryptoQuant, Julio Morenoemphasized that Capitulation of Bitcoin Miners was close and prices may have formed a local bottom.
Read Bitcoin’s [BTC] Price forecast 2024-25
Another crypto analyst, Axel Adlernoted that it is the crypto exchanges which largely picked up the Bitcoin sold in recent weeks and not the broader market.
While not necessarily negative, the analyst believed that other cohorts of holders were selling and that this artificial demand might not be healthy in the long run.