Following the release of the latest U.S. unemployment statistics, Bitcoin (BTC) has demonstrated a rebound from its previous dip in value. The cryptocurrency has consistently maintained its position above the crucial psychological threshold of $23,000.
Bullish On-Chain Metrics
On-chain analytics indicate a sustained upward trend in the long run, with the price briefly reaching $24,000 before encountering a slight dip. Despite the recent setback, bulls have successfully defended the $23,000 level, with the current Bitcoin price hovering around $23,444 at the time of writing. The realized price of Bitcoin and its short-term and long-term holders serve as important on-chain indicators to gauge market profitability and performance.
Currently, all three categories have shifted into positive territory with the price of Bitcoin surpassing $23,000. This highlights the significance of this level among market participants.
Additionally, the Bitcoin Market Value to Realized Value (MVRV) Ratio, a useful on-chain indicator, provides insight into the fair value of the market and its current profitability. The MVRV Ratio currently stands at 1.18, which is close to 1, and suggests a potential bear market bottom and smart money accumulation. This has sparked speculation that the cryptocurrency could surpass $30,000 and reach a ceiling of $40,000 in the near future.
Incoming Bitcoin (BTC) Price Dip?
However, some analysts have offered a more cautious outlook, pointing to possible market corrections before a sustained upward trend. Prominent crypto trader Rekt Capital has identified a possible slump in Bitcoin price, as evidenced by a rebound in its Relative Strength Index (RSI from an all-time low.
Another analyst, Michael van de Poppe, has also voiced a similar sentiment, positing that a dip back to the $20,000 region could be plausible before a continued upward trend. Nevertheless, Michael has reiterated his bullish outlook for Bitcoin, calling this the “Bitcoin to $35-40K season.”
Theoretically speaking, a correction to $20K makes a lot of sense and would be a great buy opportunity for #Bitcoin.
However, most of the people are waiting for this correction to happen, as a large group is sidelined.
In that regard, continuation upwards is max pain.
— Michaël van de Poppe (@CryptoMichNL) February 4, 2023
In conclusion, the price of Bitcoin has demonstrated resilience above the $23,000 level and is currently up 0.33% in the past 24 hours, according to CoinGape’s crypto market tracker. Market participants and analysts remain optimistic about the cryptocurrency’s potential, with some cautioning against potential corrections in the short-term.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.