google-site-verification=RoadygaH2N3jsP-zBochCrn0ABtnedK76rnS7kMfyOU
Take a fresh look at your lifestyle.

Bitcoin Weekly Forecast: Bullish Intention Stopped Again


A rally of around 15% raised hopes for Bitcoin, which was determinedly looking at a next target of $28,500, however, the lack of buying determination tells us in this weekly forecast that we could see a new setback in the next few hours/days.

At the time of writing, BTC is trading at $23,782. It accumulates a loss of 3.31% in the last 24 hours, but maintains a gain of 5.35% in the last 7 days.

The metrics say we’ve already hit rock bottom

Even though we may see some small selling in the coming days, it is looking more and more likely that the long-term correction has already bottomed out.

A first signal that announces this possibility is the behavior of Bitcoin bouncing on the realized price indicator.

This metric is calculated by dividing the value of all bitcoins at the price they were purchased by the number of bitcoins in circulation.

The few times that Bitcoin has dropped below its realized price, it has looked to get back above it quickly, and it has been a fairly reliable signal for locating bear market bottoms like the current one.

Another indicator that tells us about investor sentiment is the ratio of whales on exchanges.

As discussed in Crypto Quant’s weekly metrics roundup, the Bitcoin Exchange Whale Ratio is currently showing a 7-period EMA below its critical threshold of 0.50, 7 of the last 8 days. Generally, when the proportion of whales on exchanges is low, as it is now, it means there is less selling pressure.

Weekly summary of metrics.  Bitcoin Exchange Whale Ratio indicator.  Source: Crypto Quant.
Weekly summary of metrics. Bitcoin Exchange Whale Ratio indicator. Source: Crypto Quant.

Bitcoin Weekly Forecast

Today we see on the daily chart how clearly Bitcoin has been rejecting a resistance zone around $23,500, thus creating a slightly bearish forecast for the start of this week.

However, there is still a succession of small lows and higher highs, which could push the price higher in the short term. But first, it looks like we’ll see a bit of a pullback.

If during the expected correction, the selling pressure is not too much, and the support at $21,254 holds, then we could expect the start of a new push, perhaps to $28,500. Not without first seeing the resistance at $23,500 being broken through with good volume.

In case we see the bears showing up strongly in the next few hours, then we cannot rule out a possible drop towards $19,000.

Bitcoin weekly forecast.  BTC vs USDT daily chart.  Source: TradingView.
Bitcoin weekly forecast. BTC vs USDT daily chart. Source: TradingView.

Bitcoin should still look to breathe towards $30,000

If we analyze the weekly chart of Bitcoin, the forecast we get is bullish, as we see that the price is making a totally necessary upward pullback, after we saw a continuous fall of almost three months.

A healthy pullback after the big drop, which started at $47,000, would ideally take us down to $30,000 at the very least.

Then, if the price looks to form a new higher low, instead of falling hard again, then we could look to a possible resumption of the long-term uptrend.

All our publications are of an informative nature, so in no case should they be accepted as investment advice.



Comments are closed.