Posted:
- A key BTC metric suggested that the coinâs price was overvalued.Â
- Nonetheless, a few of the market indicators remained bullish on BTC.Â
On the 23rd of December, Caleb Franzen, a popular crypto analyst, highlighted that Bitcoinâs [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
â 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 BTCâs 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 BTCâs price chart turning green in 2024.
#Bitcoin is not going to $12k pic.twitter.com/KNu37krpq9
â 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 Santimentâs data. We found that both BTCâs 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.
As per CryptoQuant, BTCâs Binary CDD turned green, meaning that the movements of long-term holders over the last seven days were lower than average.
However, Bitcoinâs aSORP turned red, which meant that more investors were selling at a profit, possibly marketing a market top.
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 BTCâs 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, BTCâs 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 âgreedâ phase, further increasing the chances of a price correction.
Read Bitcoinâs [BTC] Price Prediction 2023-24
Bitcoinâs Relative Strength Index (RSI) took a sideways path, which looked concerning. Nonetheless, the MACD displayed the possibility of a bullish crossover.
BTCâs Money Flow Index (MFI) also registered an uptick, increasing the chances of a northbound price movement in the coming days.