Bitcoin: Buy or Sell, What’s the Next Step You Should Take?
- After recently falling to $56.8k, Bitcoin seemed to have a near-term bearish bias.
- There have been signs of accumulation and demand, but the period of consolidation may not end soon.
Bitcoin (BTC) rose 4.6% last week. The Bitcoin ETF inflow chart also indicates that the bulls are gaining strength.
Grayscale’s Bitcoin ETF GBTC, known for its constant capital outflows, saw an improvement in early May.
Fountain: Far Side Investors
This does not mean its short-term bias has changed to bullish. The technical structure remained bearish. It is worth studying the metrics within the network to understand where prices might be heading next.
Decide long and short term
In a post on CryptoQuant Insights, analyst Crypto Mevsimi He noted that the recent correction has resulted in lower Bitcoin supply growth.
A set of stripes was used to highlight the overheating zone, the opening of the bottom and the threshold of optimism and pessimism.
At the time of publication, the figure was approaching this threshold. If it falls below this level, we could witness a deeper correction as BTC falls towards the bottom opening.
As long as the indicator remains above this line, market sentiment is likely to be broadly positive and bulls can expect a recovery.
In the 2016 cycle, the rate-to-earnings ratio remained consistently in the overheating zone for several months without significant correction.
The overheated area was also frequently visited between July 2020 and January 2021. We are not at this part of the cycle yet.
Ideally, BTC bulls want the gray line to be protected and prices to recover, move higher, and recover in the coming months to resemble the bullish moves of the previous cycle.
Is now a good time to buy Bitcoin or should I wait?
Bitcoin’s long-term bias has been bullish, while the short-term bias has been bearish. The possibility of deeper correction is present.
AMBCrypto examined some of Santiment’s metrics to see if there was a buying opportunity.
The 30-day MVRV has been negative for most of the past month. This showed that the asset was undervalued. However, 3-day weighted sentiment has remained negative over the past two weeks.
Read Bitcoin (BTC) Price Forecast 2024-25
The average coin age appears to have stopped the previous downward trend over the past month. It has gradually increased over the past month. Combined with MVRV, this became a signal to buy Bitcoin.
However, price action suggests the bears are currently in the ascendancy and $55,000 could be reached this summer.
This is an automatic translation of our English version.