Investors and traders are now breathing a sigh of relief after nerve-racking price projections of Bitcoin on the daily charts. However, crypto merchants are still in a dilemma over the short-term price projections of BTC. Despite the increasing buy orders by miners and deep-pocket investors.
Traders from the industry employ various indicators and metrics in-order to derive a feasible projection of assets. With the market being more skittish than in the recent past, folks are still bearish about Bitcoin. Irrespective of the signals of the metrics and indicators. Successively, the fear and greed index is still at extreme fear, this time at a score of 9.
This Is What These Metrics Say About Bitcoin!
As previously said, marketers in the industry factor in various indicators and metrics, in order to foresee the prospects of Bitcoin. One popular indicator that investors employ for BTC is the 200 Week MA. This has historically shown the strong support level of Bitcoin. The star crypto has taken a rebound each time it inches closer to these support levels in the past.
It has done the same thing, this time as well. After plunging to the level of $17,737, the BTC price managed to rise well above the support. To press time levels of $20,553.01. Another metric is the MVRV ratio, which is presently closer to the buy zones. On the other hand, RSI has risen to 29.82 from the bottom of 21.46. Despite this, it is still in the oversold regions.
According to Glass Node, Bitcoin’s Stock-to-Flow Deflection model for 7D MA has hit its all-time low of 0.196. Talking about the Stock-to-Flow model, Plan B’s model is widely known to the folks of the industry. Which expects the BTC price to reach $10k by mid-2024. While there are certain limitations to the model, during the recent fall to $17,737, BTC brushed below the lower band deviation for the first time.
Summing up, while multiple indicators suggest BTC to be waiting for a rebound. Since the market is driven by sentiments and is witnessing irregular trades. The possibility of a worse case cannot be ruled out. That said, proponents from the crypto industry are expecting another fall and this time to levels around $16,000.
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Source: https://coinpedia.org/bitcoin/is-this-the-start-of-a-rebound-or-is-bitcoins-fall-imminent/