Bitcoin Price Prediction: All On-Chain Data Signals Bullish Scenario For BTC
The Bitcoin price trades in a narrow range of $16.7K, as investors continue to evaluate the outlook for monetary policies and economic growth in 2023. This week is critical as traders are awaiting data on US manufacturing PMI on Tuesday and the Federal Reserve’s latest policy meeting minutes on Wednesday.
The US Dollar Index (DXY), which rose above 104 on Tuesday, recorded a 0.63% rise. Volatility in the crypto market can also be seen this week. This will determine the direction of the Bitcoin price in the coming weeks.
Over the last 24 hours, the total volume of crypto market traded increased by 14.02%. The Bitcoin price will continue to be under pressure this week. However, the majority of the upside push will come via altcoins.
On-Chain Data Signal Bullish Scenario For Bitcoin Price
On-chain analysis has shown that the Taker Buy/Sell Ratio (30DMA data) on January 2 generated a signal to purchase Bitcoin. This is the fourth time that the metric has shown a buy signal.
Bitcoin – Taker buy/sell ratio (30DMA). Source: CryptoQuantTaker The Buy/Sell Ratio (30DMA), is one of the most reliable metrics to identify a buying cycle. It is only applicable in bull markets. This indicator generates almost exclusively sell signals in times of instability and bear market. As part of a trading strategy, it is important to confirm buy signals with other on-chain indicators.
The Taker Buy/Sell Ratio (30DMA), generated four buy signals for Bitcoin during the bear markets. The Bitcoin price action in 2022 was negatively affected by Russia’s invasion and Terra-LUNA crisis.
The 4th buy signal is likely to be a bullish call, as BTC SOPR MA30 data suggests that the probability of BTC turning bullish by 2023 is very high. The DCA strategy can be used by investors to accumulate Bitcoin at lower levels. Experts believe that institutional investors and whales will initiate a rally anytime.
Can Bitcoin Turn Bullish Now?
Popular analyst Michael van de Poppe believes that Bitcoin’s price will rise to $17K within the next few days. The BTC price will remain above the $16.5K support level.
Bitcoin Price in 1 Hour. Source: Michael van de Poppe. According to technical indicators, the BTC prices move in Bollinger Bands Squeeze. RSI is rising. The BTC price will continue to fluctuate sideways until the squeeze is over.
Also read: This Bullish Pattern Strengthens BTC To Escape Dormant Condition
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The content presented may contain the author’s personal opinion and may not reflect current market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.