Bitcoin [BTC] has encountered challenges in sustaining a surge above the $60,000 threshold, despite intermittent periods of trading above it last week.
Currently, the cryptocurrency is being traded at $58,947, indicating a modest 2.1% rise over the past 24 hours.
The current instability in the market has hindered Bitcoin from making a notable upward movement, leading to a drop below the critical $60,000 mark.
Nevertheless, despite this recent performance, some experts remain hopeful about Bitcoin’s potential for an upturn in the upcoming weeks.
Possible Rebound amidst Uncertain Market Conditions?
Renowned crypto analyst Captain Faibik, active on X (previously known as Twitter), recently shared an encouraging outlook for Bitcoin, hinting that the asset might still be on track for a substantial surge. According to Faibik,
“BTC is currently within a Bullish Flag Pattern. It is likely to test the $54k support region once again, and it is vital for the bulls to uphold this level. If Bitcoin rebounds from the $54k support, there is a possibility of it reaching $68k in September.”
For reference, a bullish flag pattern is a continuation pattern that emerges after a significant price movement, typically characterized by a brief consolidation or pullback phase that forms a rectangular shape, resembling a flag.
This pattern indicates the potential for the asset to resume its upward trajectory upon breaking out of the flag formation, which could lead to a significant price surge.
Faibik’s analysis suggested that while Bitcoin might encounter short-term volatility, the overall trend could still be upwards, especially if the $54,000 support level holds.
Another optimistic view within the crypto sphere comes from Crypto Jelle, who highlighted the emergence of a weekly golden cross on Bitcoin’s chart.
Jelle observed,
“Bitcoin is in the process of forming a weekly golden cross for the first time in its history. This week, the 100-week MA is crossing above the 200-week MA. In traditional markets, such crossovers are deemed as a bullish indication; will the same hold for BTC?”
Notably, a golden cross occurs when a short-term moving average surpasses a long-term moving average, commonly perceived as a robust signal for an impending bullish trend.
The appearance of a golden cross on Bitcoin’s weekly timeframe is viewed as a potentially significant event indicating further upward momentum.
Rise in Whale Activity in Bitcoin
Alongside technical indicators, Bitcoin’s fundamentals also hint at a positive outlook. Data from IntoTheBlock unveiled a substantial rise in whale transactions—those surpassing $100,000—over the past week.
In particular, these transactions have surged from below 13,000 last week to about 16,940 presently.
Such an increase in large transactions often signals heightened interest from institutional investors or individuals with high net worth, which could propel further appreciation in price.
Furthermore, Bitcoin’s Network Value to Transactions (NVT) ratio, employed to evaluate the asset’s valuation relative to its transaction activity, stood at 27.63 at the time of reporting, as per data from CryptoQuant.
The NVT ratio is frequently likened to the price-to-earnings (P/E) ratio in conventional markets, where a lower NVT ratio may suggest Bitcoin is undervalued, while a higher ratio could imply overvaluation.
With the current NVT ratio of 27.63, Bitcoin’s valuation seems to be within a reasonable range, potentially supporting further growth if transaction activity continues to rise.