A rally of around 15% raised hopes for Bitcoin, who was determinedly looking at a next target at $28,500, however, the little buying determination tells us in this weekly forecast that we could see a new pullback in the coming hours/days.
At the time of this writing, BTC is trading at $23,782. Accumulates a loss of 3.31% in the last 24 hours, but maintains a gain of 5.35% in the last 7 days.
The metrics say we’ve already hit rock bottom
Despite the fact that we may see some small sales in the coming days, it seems increasingly likely that the long-term correction has already bottomed out.
A first sign that announces this possibility is the behavior of Bitcoin bouncing on the realized price indicator.
This metric is calculated by dividing the value of all bitcoins at the price they were purchased, by the number of bitcoins in circulation.
The few times Bitcoin has fallen below its realized price, it has looked to get back above it quickly, and it has been a fairly reliable signal to locate bear market funds like the current one.
Another indicator that tells us about investor sentiment is the whale ratio on exchanges.
As discussed in Crypto Quant’s weekly metrics roundup, the Bitcoin Exchange Whale Ratio is currently showing a 7-period EMA below its critical threshold of 0.50, 7 of the last 8 days. Generally, when the proportion of whales in exchanges is low, as is happening now, it means that there is less selling pressure.
Bitcoin weekly forecast
Today we see on the daily chart how clearly Bitcoin has been rejecting a resistance zone around $23,500, thus creating a slightly low forecast for the beginning of this week.
However, there is still a succession of small lows and higher and higher highs, which could lead the price higher in the short term. But first, it seems that we will see a small setback.
If during the expected correction, the selling pressure is not too much, and the support at $21,254 is maintained, then we could expect the beginning of a new momentum, perhaps up to $28,500. Not before seeing the resistance at $23,500 being crossed with good volume.
In case we see the bears appear strongly in the coming hours, then we cannot rule out a possible fall towards $19,000.
Bitcoin should still look to breathe towards $30,000
If we analyze the weekly chart of Bitcoin, the forecast we get is bullish, because we see that the price is making a totally necessary upward retreat, after we saw a continuous fall of almost three months.
A healthy pullback after the big drop, which started at $47,000, would ideally take us up to $30,000 at the very least.
Then, if the price seeks to form a new higher low, instead of falling again strongly, then we could think about a possible resumption of the long-term uptrend.
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