Could Bitcoin shatter the $50,000 resistance soon? Metrics are flashing…
For weeks, bored and frustrated bulls watched Bitcoin bounce between $39,000 and $42,000 while hoping that it would shatter the resistance level soon. Their wish came true on 24 March as the king coin finally crossed $44,000. But is this another false alarm? Or a sign that Bitcoin is now on its way to bigger things?
Here’s what the metrics had to say.
Between a rock and a hard place
At press time, Bitcoin was trading at $43,940 after rising by 1.97% in the past 24 hours, while increasing by 8.28% in the last week.
A look at the MVRV ratio [30 days] revealed that the metric was in the positive zone, indicating that the king coin was perhaps slightly overpriced at the moment. Even so, those who bought the dip below $35,000 saw profits. However, the MVRV Ratio [365 days] put the king coin deep in negative territory.
So, what should a Bitcoin investor do from here on? What can they expect? Well, the Adjusted Price DAA Divergence was still flashing a buy signal, and the levels have not dropped significantly since late 2021. While the window to buy the dip was in the past, it’s not the ideal time to sell either.
Time to level up
If you’re wondering what the new support and resistance levels are, Glassnode has an answer. The crypto analytics platform advised traders to track the $42,000 to $45,000 range. While still a long way from $50,000, the decreasing Bitcoin risk signal should be a reason for bulls to celebrate.
That being said, Santiment wanted to keep the parties low key, noting,
“The trading crowd plays a major role in what happens after $BTC and other assets finally make it past a key resistance level, so we want euphoria staying low.”
Dealing with the W-word
Here, you might be wondering whether the ongoing pandemic and international conflict might affect Bitcoin’s tender recovery. For its part, Santiment reported that since the Russia-Ukraine war was officialized, Bitcoin whales with 1,000 to 10,000 BTC spiked by more than 8%.
You might not be a whale yourself, but following these movements is key as this group of investors has been ahead of the curve when it comes to anticipating Bitcoin rallies.