As 2023’s midyear draws near, the cryptocurrency market is once more on the verge of collapse, with Bitcoin (BTC) trading at a crucial support level of about $26,500. Despite the scorching Private Consumption Expenditures (PCE) data that may indicate a fee increase in June, Bitcoin is getting close to $27,000. The unexpected increase occurs despite the fact that the PCE data, which shows sustained inflation, signals the need for greater monetary tightening. In this environment, purchasers are perplexed about Bitcoin’s forthcoming trend.
Bullish Bitcoin Trend Shows No Momentum
Speculators are in control of Bitcoin’s value movement at this critical juncture, according to a recent assessment. On May 26, Checkmate, the head on-chain analyst at Glassnode, tweeted about his observations and suggested that a potential Bitcoin value standoff may be approaching.
This month, a growing number of long-term market participants have grown uneasy as BTC price approaches important pattern traces. In an effort to estimate the future path of Bitcoin’s value, on-chain experts are concentrating more on short-term holders (STHs) since pessimistic value projections are becoming more prevalent.
The profitability of spent outputs is evaluated using Glassnode’s STH-SOPR measure, which at the moment shows a predominance of losses among short-term Bitcoin holders. Customers who buy dip must go inside the market in this scenario. If this trend persists, a fear-of-missing-out (FOMO) bounce may occur. However, a bearish turn might be indicated if the realized profit/loss ratio for short-term investors remains below 1.0 for an extended period of time.
The MVRV ratio is also increasing since it reached 1.31. For the BTC price to rise over the $30K level, as was the case during the previous bull run, a retest close to 1.5 will become positive. At its current price, Bitcoin’s market cap may be traced using the MVRV ratio, which compares it to its fair-value mannequin. A price over one indicates that Bitcoin may also be expensive, while a price below one shows that it may also be undervalued.
What Is The Value Of BTC After That?
Bitcoin is about to break through its narrow range and move in the direction of a lower price. The characteristics of the U.S. equity markets, which have seen a two-day decrease due to the concern surrounding debt limit discussions, appear to be reverberating in the cryptocurrency markets.
On May 24, Bitcoin reached the 20-day EMA of $27,219; however, the bulls were unable to break through this barrier, which allowed the bears to engage in aggressive selling. The bears are currently attempting to keep the value below the quick support of $26,650. If successful, the BTC value may fall below the critical support level of $25,250, which is more likely to spark a furious battle between the bulls and the bears. At the time of writing, Bitcoin is trading at $26,786, up more than 2% over the previous day.
The bulls continue to target breaking above the 20-day EMA as the first barrier to long-term recovery. The bulls pushing the price over this resistance line may signal a change in the short-term pattern.
