Bitcoin Rebounds to $63,500 with Positive On-Chain Signals

Increased sell calls on BTC could propel the recovery to $68,600. Key metrics indicate that this currency has yet to reach the peak of this cycle.

Bitcoin Rebounds To $63,500 With Positive On Chain Signals

The price of Bitcoin dropped to as low as $62,400 yesterday before rebounding to $63,500 at the current time. According to Santiment’s online social tool, sell orders outweighed buy calls when the price was low. This pattern differed from a few weeks ago when any slight cryptocurrency price drop triggered a wave of price hike predictions.

However, this situation isn’t entirely negative for Bitcoin because peak Fear, Uncertainty, and Doubt (FUD) levels can lead to chart recoveries. In fact, a similar occurrence happened recently, notably on April 21st. On that day, BTC lost value, dropping to $64,500, leading many traders to anticipate further price declines. Contrary to those expectations, Bitcoin surged to reach $67,100.

Bitcoin shows a bullish signal despite FUD

Source: Santiment

This suggests that such a scenario might repeat if bearish sentiments persist openly. However, it’s crucial to consider possibilities from a data-driven standpoint.

Examining the MVRV Z-Score (Market Value to Realized Value) can pinpoint cryptocurrency bottoms and tops, indicating whether an asset is overvalued or undervalued. Currently, Bitcoin’s MVRV Z-Score stands at 2.32. Looking at the chart, we can observe that since March, Bitcoin has rebounded each time this metric dropped below 2.6.

Data showing that Bitcoin is undervalued and could rebound

Source: Santiment

Additionally, the Pi Cycle Top indicator determines when BTC is overheated or vice versa. The green line represents the 111-day Simple Moving Average (SMA), while the purple line represents the 350-day SMA. In most cases, Bitcoin peaks when the 111 SMA reaches or surpasses the 350 SMA. However, this isn’t the case currently as the green line remains below the purple line.

Related: Bitcoin Surges to $64,000, Significant Volatility Looms

Bitcoin's metric showing that the coin has bullish potential

Source: Glassnode

These data trends seem promising for Bitcoin investors not only in the short term but throughout most cycles. If the Pi Cycle Top maintains its position in the coming months, Bitcoin may continue to rise, targeting $80,000 to $85,000.

4.7/5

(7 votes)
  1. Avatar of Uzairu Uzee
    Uzairu Uzee

    I’m new in this system, that is why I don’t know how I will benefit with this system, please somebody guide me.

  2. Avatar of Nadir Raza
    Nadir Raza

    Im pakistan

  3. Avatar of Jabir abubakar adam
    Jabir abubakar adam

    Miss b

    • Avatar of Veronica
      Veronica

      Hi

  4. Avatar of Ani chigozie Emmanuel
    Ani chigozie Emmanuel

    Good

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

What Is A Cold Wallet Azc

Research | Editor Choice | research

What is a Cold Wallet? Top 3 Best Cold Wallets in the Crypto Market

Is a cold wallet an effective tool for storing cryptocurrencies? So, what is a cold wallet? What are some recommended types of hardware wallets to use? Let's find out together!

Azcnews Ctk Soars 100% In One Hour Ahead Of Major Update

News | Altcoin | Editor Choice

CTK Soars 100% in One Hour Ahead of Major Update

The price of the CTK token doubled within an hour ahead of the upcoming Shentu v2.10.0 update.

Azcnews A Major Uk Bank Officially Bans Cryptocurrency Transactions

News | Editor Choice | Policy & Regulations

A Major UK Bank Officially Bans Cryptocurrency Transactions

Starting May 30, the UK digital bank Kroo will prohibit its customers from conducting cryptocurrency transactions.

An Investor Becomes A Millionaire Thanks To Memecoin Shiba Inu

Altcoin | Editor Choice

An Investor Becomes a Millionaire Thanks to Memecoin Shiba Inu

An investor became a millionaire by holding Shiba Inu for 3 years, turning $2,700 into $1.2 million.

Azcnews Ethereum Approaches Ath As Fund Market Premium Peaks

News | Altcoin | Editor Choice

Ethereum Approaches ATH as Fund Market Premium Peaks

As Ethereum edges closer to its all-time high, the Fund Market Premium of ETH has reached its highest level since November 2021.