Assess the odds of Bitcoin touching $32,000 in the short term
- A recent analysis revealed the possibility that BTC’s price will reach $32,000.
- However, on-chain calculations suggested that BTC’s chart could go in any direction.
Bitcoin [BTC] continues to push the price upwards and it even passed the $27,000 mark recently. At press time, BTC was up 4.5% and was traded to $27,331.13 with a market capitalization of $528 billion.
Thanks to the uptrend, profit transactions have more than doubled compared to loss transactions on the BTC network since Wednesday.
🤑 With #Bitcoin jumps over $27k for the first time since June 12, there are 2.4 times as many profit trades as loss trades on $BTC network since Wednesday. The markets are very polarized with #FOMO and release fear which both happen at the same time. pic.twitter.com/AsZ3485KDR
— Santiment (@santimentfeed) March 17, 2023
Read Bitcoins [BTC] Price prediction 2023-24
Bitcoin may reach new highs
BTC enjoyed its bull rally, and one recently analysis posted on CryptoQuant revealed that the rally may continue. Ankaramurka, an author and analyst at CryptoQuant, mentioned that a look at Bitcoin using the Elliott Wave analysis technique suggested that Bitcoin still has a lot of potential to rise in price.
Not only that, but the price rally could continue until BTC touches the resistance level in the $29,200 – $32,300 price range, which seems ambitious. Although the number may seem high to many, interestingly, quite a few metrics on the chain supported the possibility of an upturn.
For example, BTCThe MVRV Ratio was up considerably, which was a bullish signal. Negative sentiment around BTC also appeared to have fallen. BTC’s daily active addresses have increased recently.
Source: Sentiment
A greedy market?
It was interesting to note that Bitcoin’s Fear and Greed Index had a score of 64, at press time. This indicated a bullish momentum and suggested a further uptrend in the coming days.
Source: Alternative.me
Not only that, a crypto analyst named Stockmoney Lizards on Twitter pointed out similarities between BTC’s current and 2019 price action.
In 2019, BTCThe price registered a massive rise of over 150% when the chart was similar to today. Therefore, the possibility of BTC touching a resistance level around $32,000 seemed likely.
This bull run became unstoppable pic.twitter.com/7O3tNPT1bx
— Stockmoney Lizards (@StockmoneyL) March 18, 2023
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Here’s the catch
While the aforementioned development gives rise to a strong bullish sentiment, things on the ground may be a little different. BQYoutube, an analyst and writer at CryptoQuant, revealed in a analysis that BTCs exchange inflows increased, which was a bearish sign.
As exchange inflows increased, so did BTC’s supply on exchanges. This indicated that there was an increase in selling pressure, which could result in a halt in the BTC bull rally.
Additionally, BTC’s Relative Strength Index (RSI) was in a overbought position, which further increases the chances of higher selling pressure in the coming days.
Source: CryptoQuant
