- The price of BTC has increased marginally in the last 24 hours.
- Most market indicators and metrics looked bullish on Bitcoin.
Bitcoins [BTC] The price has been comfortably near or above the $51,000 mark for the past few days. Such periods of consolidation are often followed by days of high volatility.
The latest data suggests that BTC could soon start another bullish rally that could help it reach new highs.
This looks bullish
Accordingly CoinMarketCap, BTC is up more than 1.4% in the last 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 slowly moved towards $52,000, Axel, a crypto analyst, published a tweet Highlighting an important BTC indicator. He used the SOPR ratio because the metric was approaching the 2 level.
Source: X
Historically, BTC price starts rising when the indicator reaches this level. To be precise, such episodes have already occurred in 2013, 2017 and 2021.
Additionally, AMBCrypto’s analysis of Glassnode’s data revealed that BTC’s reserve risk was in the green at press time.
When confidence is high and price is low, there is an attractive risk or return for an investment (reserve risk is low) because the probability of a bull rally is high.
Source: Glassnode
Other than that, AMBCrypto reported Previously, Bitcoin’s Network Value to Transactions (NVT) ratio recorded a decline.
A falling NVT ratio suggests that an asset is undervalued and increases the likelihood of a price increase.
Anything in the short term?
AMBCrypto's look at CryptoQuant Data revealed that BTC's foreign exchange reserves were declining, indicating less selling pressure. Whenever selling pressure subsides, the probability of a bull rally increases.
Another bullish indicator was the Chaikin Money Flow (CMF), which was also well above the neutral mark. The worrying indicator was the MACD as it showed a bearish crossover.
Source: TradingView
To read Bitcoins [BTC] Price prediction 2024-25
With most indicators looking bullish, AMBCrypto then took a look at BTC's liquidation heatmap to find the possible resistance zones it could encounter if at all a bull rally becomes a reality.
According to our analysis of the Hyblock Capital chart, BTC could face strong resistance near $53,000. Therefore, it will be crucial for BTC to break above this level to sustain a new bull rally.
Source: Hyblock Capital
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