Bitcoin: How Long Should You Wait for BTC to Reach $71,000?
Journalist
- BTC price has seen minor movements over the past 24 hours.
- Metrics and indicators suggested that BTC could become volatile over the next seven days.
Several investors speculated on a new bull rally for Bitcoin [BTC] when its price gained momentum on May 3.
However, the growth waned as the price of the king of cryptocurrencies moved only marginally over the past 24 hours. Does this indicate another price correction?
Is Bitcoin actually bullish?
Moustache, a well-known crypto analyst, recently posted a tweet highlighting some developments that pointed to a bull rally.
For the uninitiated, BTC price fell below $61,000 on April 30. However, the king coin managed to get back above this mark, turning it into a support and suggesting further price increase.
The tweet highlighted that BTC jumped higher after touching a key trend line. Historically, whenever BTC’s price has bounced back after touching the trend line, it has seen a sharp rise.
In addition, the Relative Strength Index (RSI) broke out of a falling wedge pattern. This suggested that the RSI was about to rise, supporting the possibility of a BTC bull run.
AskFX’s look at data from Glassnode revealed another bullish signal. We found that Bitcoin’s reserve risk gained upward momentum within the green zone.
Every time this happened in the past, BTC’s price gained bullish momentum.
Although these metrics were bullish, BTC’s price did not agree. According to CoinMarketCapBTC’s prices have moved only marginally in the past 24 hours.
At the time of writing, the coin’s price was $63,368.70 and its market cap was over $1.25 trillion. However, investors should not give up hope as some metrics indicate that BTC’s volatility is increasing. AskFX analyzed CryptoQuant data and found that net deposits of BTC on exchanges were lower than the average of the past seven days, indicating low selling pressure.
Coinbase’s premium for the coin was also green. This means that investors in the United States were predominantly buying.
Source: CryptoQuant.
Several market indicators suggested that BTC’s volatility could head higher in the coming seven days.
In particular, the coin’s Chaikin Money Flow (CMF) recorded a significant uptrend. Its MACD showed the possibility of a bullish crossover.
Is your portfolio green? BTC Profit Calculator
If BTC becomes volatile next week, it is important for the coin to break the $66,900 resistance level. BTC could reach $71,000 if it manages to break this level.
BTC could even hit its all-time high in the coming days if everything remains bullish. Source: TradingView
