- BTC was up by more than 9% in the last seven days.
- A few indicators looked bullish, but the rest suggested otherwise.
Bitcoin [BTC] once again surprised investors as it crossed over the $51,000 mark after plummeting under $49,000 a few days ago. Though this already looked pretty optimistic, the best part might be in store for later, as new data suggested that BTC might pump further.
Therefore, to see what might happen next, AMBCrypto checked BTC’s metrics.
What suggests a Bitcoin ATH?
Bitcoin displayed commendable performance in the last seven days as its price surged above $51k. According to CoinMarketCap, BTC was up by nearly 10% in the last seven days.
At the time of writing, it was trading at $51,781.49 with a market capitalization of more than $1 trillion.
The good news was that, as per IntoTheBlock’s prediction, the king of crypto might reach an all-time high within six months.
Source: X
To be precise, the chances of BTC touching an ATH were 85%, as per the analytics platform’s prediction. To see whether that’s possible, AMBCrypto took a look at Bitcoin’s on-chain metrics.
Our analysis revealed that BTC’s Network Value to Transactions (NVT) ratio dipped last week. A drop in the metric means that an asset is undervalued, hinting at a price hike.
Source: Glassnode
A few other metrics also looked pretty bullish for BTC. For instance, BTC’s funding rate was green. CryptoQuant’s data also revealed that Bitcoin’s taker buy/sell ratio was positive, indicating that buying sentiment was dominant in the market.
Apart from that, the king of cryptos is also expecting its next halving within a few months. Historically, BTC has always reached a new ATH a few months after its halvings. Therefore, considering these indicators, BTC reaching new highs seemed high.
Not everything is picture-perfect
Though the aforementioned metrics were bullish, a few of the other metrics told a different story. For example, BTC’s aSORP was red, meaning that more investors were selling at a profit.
In the middle of a bull market, it can indicate a market top. Its Binary CDD also followed a similar route, indicating that long-term holders’ movements in the last 7 days were higher than the average, which was bearish.
Source: CryptoQuant
On top of that, BTC’s Fear and Greed Index had a reading of 76 at press time, meaning that the market was in a state of “greed.”
Whenever the metric reaches that level, it hints at a possible price correction. Therefore, AMBCrypto checked Bitcoin’s daily chart to find out whether a downtrend is around the corner.
Read Bitcoin’s [BTC] Price Prediction 2024-25
As per our analysis, BTC’s Relative Strength Index (RSI) was in the overbought zone. This can increase selling pressure on the coin and, in turn, push the coin’s value down in the coming days.
But nothing can be said with certainty as the MACD remained in the buyers’ favor as it displayed a bullish advantage in the market.
Source: TradingView