Bitcoins [BTC] Price model has this to say about its near-term prospects

Bitcoin [BTC] last week it looked like heading for more downside, especially on May 26 when it threatened to drop below $28,000. Fast forward today and Bitcoin has rebounded to 30,600 at press time.

The constant ebb and flow has resulted in investors taking to Twitter with mixed feelings about Bitcoin’s ongoing price pump. Some see this as a sign that BTC is recovering from descending support. However, others expect it to be a dead cat bounce that will initiate more downside in the coming days. Interestingly, the rally comes towards the end of May, after weeks of subdued price action.

Bitcoin’s rally has thus sparked talk of a possible recovery rally. On the downside, the slight uptrend might just be a dead cat rebound, paving the way for more downside. Perhaps BTC’s pricing model will help paint a clearer picture of where BTC is headed.

There is still room for cons?

If Bitcoin is currently in one of its biggest crypto winters, then it would be normal to expect a small recovery rally before an extended drop. A fall in price below the realized price line has preceded every major bull run in the past. Bitcoin’s price action still has work to do before such an outcome occurs.

Source: Glassnode

BTC’s MVRV ratio was still able to stay above one during the recent price drop. In contrast, historically, every major move up occurs when it’s below one. If Bitcoin continues to follow the same model, we should expect a small rally followed by a more bearish performance.

As for supply dynamics, BTC supply on exchanges fell from 10.20% on May 25 to 10.10% on May 29. The population of whales increased from 46.75% to 47.32% in the same period.

Source: Santiment

Bitcoin supply distribution by address balance also highlights an interesting result. It appears that addresses holding between 10,000 and 100,000 BTC reduced their BTC holdings from 11.41% on May 25 to 11.29% on May 29. It looks like the larger whales have absorbed the BTC dumped from mid-tier addresses.

Source: Santiment

It appears that the accumulation of whales at lower price levels supported BTC’s ongoing rally. It also looks like most addresses holding between 10,000 and 100,000 BTC expected the price to drop further. Despite the nature of the market events, the token did not see any major movement in metrics. Therefore, the short-term performance of the King token still remains a mystery.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers