Bitcoin
BTC$27 686.50

-1.54%

Ethereum
ETH$1 753.83

-2.24%

Tether
USDT$1.002131

0.08%

Binance Coin
BNB$324.49

-3.72%

USD Coin
USDC$0.999458

0.08%

XRP
XRP$0.451417

-1.31%

Bitcoin price moves toward $40K as on-chain and technical analysis favor bulls


14 Jun 2021

#Bitcoin

Bitcoin price is still 38% away from its all-time high but a handful of technical indicators suggest bulls are gathering strength. Bitcoin (BTC) price saw a bullish turn of events on June 13 as the price broke out to $39,252 but many analysts are still on the fence when it comes to determining whether the digital asset is ready to continue its uptrend. 

To date, the crypto market remains on edge and is two months removed from Bitcoin’s all-time high near $65,000. A market analysis from Delphi Digital identified a “major head and shoulders pattern” that could “spell more short term pain if BTC dives below $30,000.”

With that in mind, now is a good time to review some key data points to gain a greater perspective on where Bitcoin price could go next.

Short-term holders suffer losses

A 50% decrease in price over the past two months may seem extreme to those unfamiliar with the volatility of the cryptocurrency market, but it comes as no surprise to the long-term hodlers who have seen multiple drawdowns of an even larger magnitude over the last decade.  As seen in the chart, a drawdown of 70% or greater is not uncommon for BTC, especially following a significant run-up in price, hinting that the possibility for further pain is still a threat as bulls battle bears in the mid $30,000 range.

The rapidly falling prices sent new and old Bitcoin holders running for the sidelines, resulting in traders selling at a loss according to SOPR (Spent Output Profit Ratio) data highlighted by cryptocurrency analyst filbfilb. 

In the past couple of days signs of a SOPR reset have appeared, indicating that average wallets are now selling at a profit again. The Crypto Fear and Greed Index (CFGI) has also reached its lowest level since the March 2020 sell-off initiated by the Covid-19 pandemic.

The high levels of fear currently being experienced by a majority of traders have many sitting on the sidelines as concerns of further losses remain a legitimate possibility. For the contrarian investors, however, low scores on the index are a signal to “be greedy when others are fearful” as Warren Buffet would say and the chart above shows that buying during high fear moments tends to be a good entry-level.

Sentiment begins to rebound

While it’s true that Bitcoin has seen it’s price fall more than $30,000 over the past two months, it's important to note that the amount it has fallen as well as its current price are nearly double the previous all-time high set in 2017, shining a light on just how significant the rally has been over the past six months. On-chain analysis from Decentrader shows that an ‘oversold’ signal was recently triggered, “suggesting that BTC may soon be ready to turn around and move to the upside.”

The active addresses sentiment indicator compares the 28-day change in price, shown by the orange line, with the 28-day change in on-chain active addresses which is represented by the band of grey lines. The orange line moving from below the dotted green line back up into the active address change band is considered a bullish signal, and this most recently occurred on June 10, indicating the possibility of a turnaround in the market.

According to Rekt Capital, a popular analyst on Twitter, Bitcoin is still on a path to realize a new all-time high. For now, perhaps it's best to just take a break from staring at charts and worrying about which way Bitcoin will choose. The long-term outlook remains strong as countries like El Salvador have begun choosing BTC as legal tender and more people become interested in cryptocurrency.


Related

Bitcoin retreats below $25000
Bitcoin retreats below $25000
The nice Bitcoin technique
The nice Bitcoin technique
Bitcoin falls below $20000
Bitcoin falls below $20000
Bitcoin falls below the $22000
Bitcoin falls below the $22000
Powell's speech deepens bitcoin correction
Powell's speech deepens bitcoin correction
HFM Introduces New Virtual Analyst
HFM Introduces New Virtual Analyst
Copy Trading Strategies: How to Start Successful Copy Trading
Copy Trading Strategies: How to Start Successful Copy Trading
Which Citizenship by Investment Programs are Crypto-Friendly?
Which Citizenship by Investment Programs are Crypto-Friendly?
Pressure on BTC at the $21500 level
Pressure on BTC at the $21500 level

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 72.8% 51 $27 686.50 -1.54% 12.26% $535 055 944 515 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 82% 34 $1 753.83 -2.24% 5.65% $214 622 976 485 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.4% 1 $1.002131 0.08% -0.07% $77 601 370 004 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 77.2% 47 $324.49 -3.72% 0.92% $51 234 239 201 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 90.4% 2 $0.999458 0.08% -0.04% $34 703 015 524 USDC 7 days price change
6 XRP (XRP) XRP XRP predictions 87.2% 17 $0.451417 -1.31% 23.74% $23 000 119 507 XRP 7 days price change
7 HEX (HEX) HEX HEX predictions 62.4% 82 $0.123358 18.48% 52.30% $21 391 630 916 HEX 7 days price change
8 Cardano (ADA) ADA Cardano predictions 73.6% 46 $0.369965 -1.76% 12.89% $12 844 876 045 ADA 7 days price change
9 Lido stETH (STETH) STETH Lido stETH predictions 94.4% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 68.8% 57 $0.075005 -1.31% 6.24% $9 950 971 303 DOGE 7 days price change
11 Polygon (MATIC) MATIC Polygon predictions 71.2% 51 $1.12 -1.91% -0.94% $9 797 674 979 MATIC 7 days price change
12 Solana (SOL) SOL Solana predictions 70.4% 54 $21.69 -3.00% 10.97% $8 322 389 970 SOL 7 days price change
13 Binance USD (BUSD) BUSD Binance USD predictions 94.4% 1 $0.999370 -0.05% -0.07% $8 058 942 746 BUSD 7 days price change
14 Polkadot (DOT) DOT Polkadot predictions 74% 51 $6.17 -2.34% 2.98% $7 212 834 820 DOT 7 days price change
15 Litecoin (LTC) LTC Litecoin predictions 68.4% 58 $87.92 8.34% 11.30% $6 377 673 020 LTC 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2023 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.