It has not been all rosy up to now week, however the digital asset market has reacted pretty nicely to the beginning of Donald Trump’s new administration. Particularly, the Bitcoin worth has been in a position to climate the unsure storm clouding the cryptocurrency market over the previous few days.
Whereas the premier cryptocurrency may need slowed down in current days, the newest on-chain commentary reveals that BTC is more likely to proceed its upward motion. Right here’s how the token worth is likely to be gearing for an additional leg up over the approaching weeks.
Is There Room For Additional BTC Worth Development?
In a Jan. 24 put up on the X platform, market intelligence agency Glassnode explained that the Bitcoin worth will not be but overheating and nonetheless has the potential for additional development over the following few weeks. This on-chain revelation relies on the Mayer A number of indicator, which is calculated because the ratio between as asset worth and the 200-day transferring common (200DMA).
The Mayer A number of measures the space of the Bitcoin worth from its long-term common to estimate overbought and oversold circumstances. This metric can be used to determine macro bull or bear bias when analyzing cyclical worth actions.
Traditionally, the Mayer A number of indicators an overbought market situation and a possible worth high when its worth is above 2.4. However, a Mayer A number of worth under 0.8 suggests an oversold situation and {that a} market backside is likely to be in.
Supply: Glassnode
Based on information from Glassnode, the worth of Bitcoin’s Mayer A number of stands at 1.37, indicating that the premier cryptocurrency remains to be fairly a distance from the overbought territory. This piece of knowledge implies that BTC nonetheless has room for additional development on this cycle. Furthermore, the Bitcoin worth is not less than 35% above the 200-day transferring common, which is a bullish sign.
Glassnode highlighted that the worth of Bitcoin would wish to surge above $180,000 to develop into overbought. This worth stage represents the potential peak for the flagship cryptocurrency on this present cycle and could possibly be adopted by a development reversal. With the oversold threshold at 0.8, the Mayer A number of locations the Bitcoin worth backside at round $60,000.
The Bitcoin worth has not been significantly spectacular since surpassing the $100,000 mark, resulting in shouts of a worth high out there. This indicator considerably offers perception into the potential path of the premier cryptocurrency over the following few months.
Bitcoin Worth At A Look
As of this writing, the price of Bitcoin sits just under $105,000, reflecting no vital motion up to now day.
The worth of BTC on the day by day timeframe | Supply: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
