Bitcoin could have entered a new bullish phase, as many market participants have ‘fallen out of the game’ in recent months. However, the risk of a pullback and testing of recent lows remains, according to LookIntoBitcoin.
The technical picture is encouraging. Despite the likelihood of fading momentum in recent weeks, there are good chances of reaching the 200-week WMA at around $24,690, according to the specialists.
In October–November, the indicators Сumulative Value Days Destroyed (CVDD) and сбалансированной цены pointed to a high probability of the price reaching a cyclical bottom. With each day after the price rebound from key metric levels, the chances of continuing the rally grow, the specialists emphasised.
Puell’s multiplier has slipped into the accumulation band. Such a situation typically coincides with a bottom in conditions where some miners have no choice but to forcibly sell Bitcoin at a low price.
At present, the indicator is exiting the accumulation band, historically signaling a shift from bearish to bullish phase.
Hash Ribbons metric also indicates easing of miners’ financial stress and potential to sustain positive price dynamics, at least in the near term.
Crossing of the ‘hash ribbons’ (30-day DMA from bottom to top 60-day DMA) signaled the long-awaited ‘breather’ for the industry. The signal often coincides with a short-term price decline as miners regain confidence, but subsequently has a positive effect due to reduced forced selling.
MVRV Z-Score also points to bottoming. Analysts described such moments with the words ‘it’s all over’ — such thoughts may arise at this moment among panic-prone investors and newcomers.
Analysts at Glassnode indicated a likely local maximum for Bitcoin.
Earlier, Bloomberg strategist Mike McGlone forecast that the Nasdaq Composite would slip below its 200-day moving average, which could delay the rally in digital gold.
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