The price of Bitcoin (BTC) is currently in the sub-$70,000 range after marking an all-time value.
However, looking at on-chain metrics, it appears that BTC could be on the rise again.
Bitcoin is flashing buy signals
Bitcoin price, trading at $67,760 at the time of writing, is recording a red candle today, but metrics point to a long-term bullish outlook for the cryptocurrency. The reserve risk indicator is currently in the green zone and is about to leave it.
This indicator measures the confidence of long-term Bitcoin holders by comparing the current price to the long-term HODLer cost base. Lower reserve risk suggests that long-term holders are likely to accumulate holdings, suggesting a recovery is on the horizon.
Bitcoin reserve risk. Source: Glassnode
This potential is also reflected in the divergence of the Price Daily Average Addresses (DAA). This indicator measures the discrepancy between a cryptocurrency's price and the number of active addresses interacting with it daily, helping to identify potential price trends based on user activity.
At moments of price decline and rise of the active address, the indicator flashes a “buy” signal. This is currently the case and makes BTC ripe for accumulation.
Bitcoin price DAA divergence. Source: Santiment
If these factors encourage investors to add BTC to their wallets, Bitcoin price could see a surge in the next few days.
BTC price prediction: Upswing
Bitcoin price is likely to see a surge to $70,000 and above this weekend. As investors are likely to accumulate due to the optimistic anticipation ahead of the halving, the price could also rise.
However, Bitcoin price will face some resistance at $71,370 as this barrier has not been broken since mid-March and is likely to remain so until strong bullish signals are evident.
Read more: Bitcoin price prediction 2024/2025/2030
BTC price chart. Source: TradingView
On the other hand, if BTC fails to break the resistance level at $68,250, Bitcoin will fall back to $65,300. However, a fall below this level would invalidate the bullish thesis and see the cryptocurrency test $61,730.
Disclaimer
In accordance with Trust Project policies, this pricing analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy and Disclaimers have been updated.
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