This analyst relies on on-chain calculations to support a price rally for Bitcoin (BTC/USD).
-
Bitcoin rose to $17,000 on Monday.
-
InvestAnswers believes BTC is turning bullish based on realized value.
-
The token faces resistance at $19,000 and the 50-day MA.
Bitcoin price (BTC/USD) was up marginally on Monday as most cryptocurrencies recovered a bit. BTC was back to $17,000 even as data from crypto derivatives exchange Deribit showed that sentiment had shifted in favor of the cryptocurrency. But while this is happening, a popular crypto analyst is predicting a rally.
InvestAnswers, a popular crypto analyst, says that chain signals suggest that BTC is overdue for a rally. The pseudonymous analyst examines Bitcoin’s realized price or RP values in the argument. Normally, RP posts the value of all BTC up to the price the tokens were purchased and then divides it by the number in circulation. InvestAnswers says BTC never stays below RP for long.
The analyst says BTC has been below RP for 170 days. In 2020 BTC stayed below RP for 8 days, while in 2018 it was 115 days. In 2015 it was slightly longer at 240 days and only 110 days in 2011. According to the analyst, the RP of BTC is $21,000. Using the analogy, he says the Bitcoin price is about to skyrocket.
In addition to RP, InvestAnswers says the increasing weakness in the US dollar index suggests a likely rally. The index is inversely correlated with the risk on the assets, meaning that if it goes lower, cryptocurrencies go the other way.
BTC Price Analysis and Outlook Amid Small Upswings
BTC/USD Chart by TradingView
BTC is trading above the 20-day moving average. Bulls have won the war by $16,000, although the bears are still relentless. The RSI remains below the midpoint and the bullish momentum looks somewhat weak but improving.
Bulls will next test the 50-day MA and the $19,000 resistance.
Should You Buy BTC?
BTC is still largely bearish. However, all indications are that buyers are looking for the next opportune moment. Meanwhile, BTC eyes $19,000 and a recovery past that level could usher in more upside.
Where can you buy BTC
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, along with crypto/fiat and crypto/crypto pairs. eToro users can connect, learn from and copy or be copied by other users.
Buy BTC with eToro today
Bit stamp
Bitstamp is a leading cryptocurrency exchange that offers trading in fiat currencies or popular cryptocurrencies. Bitstamp is a fully regulated company that offers users an intuitive interface, a high level of security for your digital assets, excellent customer support and multiple withdrawal methods.
Buy BTC with Bitstamp today
