Bitcoin
Why Bitcoin prices might turn around soon
If Bitcoin’s weekly RSI rebounds from a key support level, the coin’s price action can turn bullish in the coming days.
- BTC witnessed a price correction causing its value to drop below $26,000.
- Metrics revealed that investors accumulated more BTC during every price correction.
Bitcoin [BTC] has remained pretty dormant for quite a few weeks, and it failed to breach the $26,000 mark on multiple occasions. The sluggish movement affected the entire market as interest in crypto dropped. However, if metrics were to be considered, there is a possibility of a change in trend in the coming days.
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This can make Bitcoin’s price volatile
After reaching $27,000, the king of cryptos’ price witnessed another price correction, once again pushing it under $26,000. According to CoinMarketCap, at the time of writing, BTC was trading at $25,685.36 with a market capitalization of more than $500 billion.
However, CryptoCon pointed out a metric that suggested the possibility of a change in BTC’s price trend. As per the tweet, Bitcoin typically enters a bull market as soon as the weekly Relative Strength Index (RSI) crosses the 50 mark. Historically, after a fake crossover, the weekly RSI, when it rebounds from two support levels, is followed by bull markets.
Typically, the #Bitcoin Bull Market is launched as soon as the Weekly RSI crosses the dashed mid-line.
But every cycle, #Bitcoin makes a fake cross over and fails to start the Bull Market.
After the rise to 32k, the fake out… pic.twitter.com/9ImfvdIDYr
— CryptoCon (@CryptoCon_) September 4, 2023
At press time, BTC’s weekly RSI had a value of about 43, which is near the first support level. Therefore, if it manages to make a rebound, the possibility of a price uptick is likely. BTC’s Chaikin Money Flow (CMF) registered a small hike, increasing the chances of a rebound.
However, its MACD remained bearish, which suggested that the RSI might get pushed towards the second support level.
Source: TradingView
Bitcoin’s accumulation phase is ending
While there were chances of BTC’s price turning volatile, other datasets revealed that the accumulation period is coming to an end soon. As per the 28 November cycle theory, Bitcoin’s accumulation phase is about to end in a few months.
Time in the #Bitcoin N28CT green year is running out, and with it so is time at the best cycle buying prices.
Green year has called the bottom at 15.5k in November 2022, and predicted the best buying prices.
It also came close to its next prediction,… pic.twitter.com/qymGzeBh4i
— CryptoCon (@CryptoCon_) September 4, 2023
This also corresponds with Bitcoin’s upcoming halving, which can act as a trigger for BTC to reach a new all-time high. Historically, BTC’s price has always reached new highs a few months after halving.
A look at Santiment’s chart revealed that investors took advantage of BTC’s slow-moving price as they stockpiled the asset during the accumulation phase. Whenever BTC’s price fell, its exchange outflow spiked, meaning investors bought the coin.
Source: Santiment
Read Bitcoin’s [BTC] Price Prediction 2023-24
Additionally, whale transactions also increased during those incidents. This meant that the big players were also accumulating. Additionally, BTC’s supply on exchanges dropped while its supply outside of exchanges increased for the past several weeks, reflecting the stockpiling trend.
However, a change in that trend can be noted during the latest price correction on 1 September, in which it appeared that investors sold BTC.
