Within the last 2 days, Bitcoin (BTC) has witnessed a significant surge in its value, climbing from a low of $89,164 to a peak of $97,657.
The recent uptrend in Bitcoin’s price has captured the attention of the cryptocurrency community, sparking discussions about its future trajectory.
Analyst Dan from CryptoQuant has indicated that Bitcoin’s upward momentum is still in progress, highlighting the short-term SOPR as a key indicator.
Continued Upward Momentum of Bitcoin
Based on Dan’s analysis, the ongoing upward cycle of Bitcoin suggests that caution is warranted for short-term trading.
The short-term SOPR exhibits a consistent pattern, transitioning from red to green circles during market corrections. This shift tempers expectations of significant price increases, only to be followed by a market rebound.
A higher volume of red circles implies profit-taking by major investors, potentially leading to more pronounced correction phases.
Comparing the current market conditions with those of March 2024, there is a notable decrease in profit-taking volume, indicating that the correction phase this time might be shorter than the previous seven-month period.
With the current correction already lasting over a month, the likelihood of the upward trend resuming in the first quarter of 2025 is high.
In the short term, Bitcoin could witness sudden drops that might decrease the short-term SOPR before initiating another sustained uptrend. Therefore, engaging in aggressive short-term trades is risky and demands careful consideration.
Insights from Bitcoin Charts
While the aforementioned analysis paints a positive picture, it is crucial to consider other market metrics.
According to CryptoCrypto’s evaluation, Bitcoin continues to face strong buying pressure, driven by bullish sentiment among market participants.
Bitcoin’s taker-buy-sell ratio has consistently been above 1 in the past two days, signaling a dominance of buy orders over sell orders for BTC.
This indicates a market favoring buyers, suggestive of a robust trend in accumulation.
Moreover, there has been a resurgence in the number of active users and participants in the Bitcoin network, reflected in the decreasing NVT ratio over the last 4 days.
A declining NVT ratio indicates heightened demand for the network, underscoring the strengthening fundamentals of the market.
Bitcoin’s SOPR has maintained levels above 1 for the past six days, indicating positive market sentiment where traders are willing to sell and then re-enter the market at higher levels. The willingness of buyers to keep purchasing even amid profit-taking signifies strong demand.
In essence, Bitcoin continues to witness robust demand, with buyers entering new positions, signaling a bullish market sentiment.
If bullish momentum persists, Bitcoin could target $98,800 and then aim for the significant $100,000 mark. However, a correction might lead to a dip to around $96,560.