After reaching a peak of $108,364, Bitcoin (BTC) has encountered challenges in maintaining its upward momentum. The cryptocurrency experienced downward pressure, dropping to a low of $92,118. Consequently, in recent weeks, BTC has been trading within a range of $92k to $107k.
Presently, Bitcoin’s price stands at $96,298, showing a 2.44% decline on daily charts.
Despite these recent fluctuations, market participants maintain an optimistic outlook, viewing the pullback as a normal market correction before a potential uptrend. Analysts at Cryptoquant anticipate a surge in Bitcoin’s price towards the range of $130k to $160k, based on observations related to the NUPL indicator.
Bitcoin’s NUPL Keen on Prolonging Bullish Momentum
According to the analysis by Cryptoquant’s Baro Virtual, the NUPL for Bitcoin indicates that the cryptocurrency is approaching the end of its current cycle, with a target zone set between $130k and $160k.
This suggests that Bitcoin is edging closer to the peak of its bullish phase, historically characterized by significant price spikes before reaching its zenith. During this period, traders tend to pocket substantial profits, leading to speculative buying pressure that causes prices to surge.
Baro Virtual highlights that the NUPL has formed a cup and handle pattern, indicating a forthcoming push for Bitcoin towards the projected price range of $130k to $160k.
When the NUPL adopts a cup and handle configuration, it signals a consolidation of unrealized profits along with a minor dip, hinting at a temporary slowdown in market sentiment prior to a robust upward trend continuation.
Furthermore, Bitcoin has successfully broken through the 365-day Moving Average of the NUPL index, hinting at a possible uptrend in both the medium and long term.
Insights from Bitcoin Price Charts
Despite Bitcoin’s recent struggle in maintaining upward momentum, the overall long-term outlook favors a significant uptrend.
One notable indicator is Bitcoin’s MVRV ratio, which has declined to 2.42 over the past week. Traditionally, an MVRV ratio within the range of 2-3 is considered bullish and neutral.
Therefore, the market is not exhibiting signs of overheating, and buyers are finding a balanced risk-reward ratio. This signifies market stabilization and potential price recovery.
In addition, Bitcoin’s SOPR has seen a decrease but has stabilized at 1.01. A stabilized SOPR around 1 indicates that Bitcoin is testing a break-even level, reflecting a neutral market sentiment. Long-term holders view this as an opportunity to accumulate BTC from weaker hands.
Lastly, Bitcoin’s NVT Golden Cross has fallen to 0.98, pointing towards a bullish divergence wherein increased transaction volume reflects growing confidence in the network’s activity.
In conclusion, although Bitcoin has retraced in the past week, the underlying long-term fundamentals suggest a potential recovery following the corrective phase.
As such, these conditions indicate a possible reversal in trends. In a scenario where this reversal occurs, Bitcoin could potentially surpass the $99,790 resistance level. However, if bearish sentiment strengthens, Bitcoin might see a decline to $95,600.