The Bitcoin (BTC) price has entered a strong consolidation and trading around the $29,000 level for a while leaving investors confused amid the subdued price volatility.
However, the on-chain data for Bitcoin shows an overall improvement in network activity. While the BTC price recently corrected from $32,000 to $29,000, the total number of new Bitcoin addresses has continued to rise. “This bullish divergence between price and network growth hints at a stable long-term BTC uptrend. Buy the dip!” writes popular crypto analyst Ali Martinez.
Other on-chain indicators also signal a bullish momentum for Bitcoin. Martinez explains: “All major $BTC oscillators (MVRV, aSOPR, Puell Multiple, and Reserve Risk) continue to hover above the 0 line. This indicates the ongoing price correction might just be a blip”.
Bitcoin Golden Cross, BTC Price Recovery Begins
In a post on TradingView last week August 4, crypto trading analyst TradingShot noted that Bitcoin has just crossed the golden-cross indicator for the third time in history. Thus, it could be the beginning of a new bull rally to another record-high level.
The golden cross pattern happens when a short-term moving average rises above a long-term moving average i.e. 50 DMA crossing the 200 DMA. This basically suggests a positive trend for the cryptocurrency. During the previous two golden-cross instances, the BTC price rallied significantly thereafter.
Citing previous Golden cross cycles, TradingShot noted that the next upward target for Bitcoin would be its current ATH i.e. $69,000. “It could be a fair estimate that Bitcoin would have reached the current ATH ($69,000) by around this time next year,” he said.
It’s important to mention that the unique circumstances of the March 2020 COVID-19 crash, which was like a Black Swan event, temporarily disrupted the usual pattern. Experts predict that the upcoming Bitcoin halving in 2024 might start a new market cycle. However, in the short term, there are concerns that Bitcoin’s price could drop below $29,000.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.