Assessing the odds of Bitcoin touching $32,000 in the near term

• A recent analy­sis revealed the pos­si­bil­i­ty of BTC’s price touch­ing $32,000.
• How­ev­er, on-chain met­rics sug­gest­ed that BTC’s chart can head in any direction. 

Bit­coin [BTC] con­tin­ues to push its price upward and it even crossed the $27,000 mark recent­ly. At press time, BTC was up 4.5% and was trad­ing at $27,331.13 with a mar­ket cap­i­tal­iza­tion of $528 billion. 

Thanks to the uptrend, prof­it trans­ac­tions have more than dou­bled com­pared to loss trans­ac­tions on the BTC net­work since Wednesday. 

🤑 With #Bit­coin jump­ing above $27k for the first time since June 12th, there are 2.4x as many prof­it trans­ac­tions as loss trans­ac­tions on the $BTC net­work since Wednes­day. Mar­kets are very polar­ized with #FOMO and drop fears both hap­pen­ing simul­ta­ne­ous­ly. https://t.co/riPv1JYnfg pic.twitter.com/AsZ3485KDR

— San­ti­ment (@santimentfeed) March 17, 2023

Read Bitcoin’s [BTC] Price Pre­dic­tion 2023–24

Bitcoin can reach new highs

BTC enjoyed its bull ral­ly, and a recent analy­sis post­ed on Cryp­to­Quant revealed that the ral­ly might con­tin­ue. Ankara­mur­ka, an author and ana­lyst at Cryp­to­Quant, men­tioned that a look at Bit­coin using the Elliott Waves analy­sis tech­nique sug­gest­ed that Bit­coin still has a great poten­tial to rise in price. 

Not only that, but the price uptick might con­tin­ue until BTC touch­es the resis­tance lev­el in the price range of $29,200 – $32,300, which seems ambi­tious. Though the fig­ure might seem high to many, inter­est­ing­ly, quite a few on-chain met­rics sup­port­ed the pos­si­bil­i­ty of the uptick. 

For instance, BTC’s MVRV Ratio was con­sid­er­ably up, which was a bull­ish sig­nal. Neg­a­tive sen­ti­ments around BTC also seemed to have declined. BTC’s dai­ly active address­es have increased lately.

Source: San­ti­ment

A greedy market?

It was inter­est­ing to note that Bitcoin’s Fear and Greed Index had a score of 64, at press time. This indi­cat­ed a bull­ish momen­tum and sug­gest­ed a fur­ther uptrend in the com­ing days. 

Source: Alternative.me

Not only that, a cryp­to ana­lyst by the name of Stock­money Lizards on Twit­ter, point­ed out sim­i­lar­i­ties between BTC’s cur­rent and 2019 price action. 

In 2019, BTC’s price reg­is­tered a mas­sive uptick of over 150% when its chart was sim­i­lar to that of today’s. There­fore, the pos­si­bil­i­ty of BTC touch­ing a resis­tance lev­el of around $32,000 seemed likely. 

#Bit­coin

This bull run just got unstop­pable pic.twitter.com/7O3tNPT1bx

— Stock­money Lizards (@StockmoneyL) March 18, 2023

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Here is the catch 

While the afore­men­tioned devel­op­ments give rise to a strong bull­ish notion, things on the ground can be a lit­tle dif­fer­ent. BQY­outube, an ana­lyst and author at Cryp­to­Quant, revealed in an analy­sis that BTC’s exchange inflow was increas­ing, which was a bear­ish sign. 

As exchange inflow spiked, BTC’s sup­ply on exchanges also increased. This indi­cat­ed that there was an increase in sell­ing pres­sure, which could result in a halt to the BTC bull rally. 

Addi­tion­al­ly, BTC’s Rel­a­tive Strength Index (RSI) was in an over­bought posi­tion, fur­ther increas­ing the chances of high­er sell­ing pres­sure in the com­ing days. 

Source: Cryp­to­Quant