- A key BTC metric suggested that the coin’s price was overvalued.
- Nonetheless, a few of the market indicators remained bullish on BTC.
On the 23rd of December, Caleb Franzen, a popular crypto analyst, highlighted that Bitcoin’s [BTC] price had plummeted below a key support level. However, the coin was quick to recover, as it reached the red support zone overnight.
Short-term #Bitcoin price action is still following this structure.
A concern is that we've broken below the rising support trendline (and perhaps flipping it into resistance?).
Nonetheless, we rebounded on the red support zone overnight. pic.twitter.com/WnWCeyrt5t
— Caleb Franzen (@CalebFranzen) December 23, 2023
In the meantime, other datasets showed that we were about to witness a bull rally. Will BTC be able to repeat history and start 2024 with a bull rally?
Is Bitcoin preparing for a bull rally?
While BTC’s price recovered, another analysis suggested that we had exited the re-accumulation phase. This hinted that BTC might be preparing for a bull rally in the coming weeks, increasing the chances of BTC’s price chart turning green in 2024.
#Bitcoin is not going to $12k pic.twitter.com/KNu37krpq9
— Mags (@thescalpingpro) December 23, 2023
According to CoinMarketCap, BTC was up by more than 3% in the last seven days. At the time of writing, BTC was trading at $43,602.18 with a market capitalization of over $853 billion.
To check whether accumulation has come to an end, AMBCrypto took a look at Santiment’s data. We found that both BTC’s Supply on Exchanges and Supply outside of Exchanges were closely knit.
This meant that BTC was high on neither selling pressure nor buying pressure at the time of writing.
Source: Santiment
As per CryptoQuant, BTC’s Binary CDD turned green, meaning that the movements of long-term holders over the last seven days were lower than average.
However, Bitcoin’s aSORP turned red, which meant that more investors were selling at a profit, possibly marketing a market top.
Source: CryptoQuant
Looking forward
While buying and selling pressure were nominal on Bitcoin, AMBCrypto checked other metrics to find whether the king coin could initiate a bull rally over the next week.
Our analysis found that while BTC’s price somewhat moved sideways, its NVT Ratio spiked substantially.
High NVT Ratio values have historically coincided with market tops and periods of overvaluation, suggesting that we might witness a price correction.
On top of that, BTC’s Fear and Greed Index had a value of 70 at press time. When the metric reaches that level, it means that the market is in a “greed” phase, further increasing the chances of a price correction.
Source: Glassnode
Read Bitcoin’s [BTC] Price Prediction 2023-24
Bitcoin’s Relative Strength Index (RSI) took a sideways path, which looked concerning. Nonetheless, the MACD displayed the possibility of a bullish crossover.
BTC’s Money Flow Index (MFI) also registered an uptick, increasing the chances of a northbound price movement in the coming days.
Source: TradingView
