It has not been all rosy prior to now week, however the digital asset market has reacted pretty properly to the beginning of Donald Trump’s new administration. Particularly, the Bitcoin value has been capable of climate the unsure storm clouding the cryptocurrency market over the previous few days.
Whereas the premier cryptocurrency may need slowed down in latest days, the newest on-chain statement reveals that BTC is prone to proceed its upward motion. Right here’s how the token value is likely to be gearing for one more leg up over the approaching weeks.
Is There Room For Additional BTC Value Progress?
In a Jan. 24 put up on the X platform, market intelligence agency Glassnode defined that the Bitcoin value shouldn’t be but overheating and nonetheless has the potential for additional progress over the subsequent few weeks. This on-chain revelation is predicated on the Mayer A number of indicator, which is calculated because the ratio between as asset value and the 200-day shifting common (200DMA).
The Mayer A number of measures the gap of the Bitcoin value from its long-term common to estimate overbought and oversold situations. This metric can be used to determine macro bull or bear bias when analyzing cyclical value actions.
Traditionally, the Mayer A number of alerts an overbought market situation and a possible value high when its worth is above 2.4. Alternatively, a Mayer A number of worth beneath 0.8 suggests an oversold situation and {that a} market backside is likely to be in.
Supply: Glassnode
In response to knowledge from Glassnode, the worth of Bitcoin’s Mayer A number of stands at 1.37, indicating that the premier cryptocurrency continues to be fairly a distance from the overbought territory. This piece of information implies that BTC nonetheless has room for additional progress on this cycle. Furthermore, the Bitcoin value is at the least 35% above the 200-day shifting common, which is a bullish sign.
Glassnode highlighted that the worth of Bitcoin would want to surge above $180,000 to grow to be overbought. This value degree represents the potential peak for the flagship cryptocurrency on this present cycle and might be adopted by a development reversal. With the oversold threshold at 0.8, the Mayer A number of locations the Bitcoin value backside at round $60,000.
The Bitcoin value has not been significantly spectacular since surpassing the $100,000 mark, resulting in shouts of a value high available in the market. This indicator considerably offers perception into the potential path of the premier cryptocurrency over the subsequent few months.
Bitcoin Value At A Look
As of this writing, the worth of Bitcoin sits just under $105,000, reflecting no vital motion prior to now day.
The value of BTC on the day by day timeframe | Supply: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView