Can Bitcoin BTC keep up with its weekend Price Rally
Bitcoin BTC has been performing well in the market ever since the start of 2023, though the question remains if it can keep up with its weekend price rally.
Over the past several weekends, Bitcoin BTC experienced a price surge until the last weekend of 11-13 March. It did experience some volatility but not too much.
A digital asset trader Markus Thielen provided his technical analysis of the price movements of Bitcoin. Technical Analysis refers to evaluating the prices by analyzing the statistics generated by market activity (past prices and volume).
Markus mentioned in his tweet that Bitcoin has long-term support which means that a level of demand for that particular asset will not let it fall below a certain range. He further suggested that Bitcoin will keep up with its price rally even beyond $26,000.
Better days are yet to come
Bitcoin is performing much better lately, however, analysts expect even better performance. Markus revealed that according to the Bitcoin price chart, its mid-term downtrend will end soon. This means that the price might start increasing. Moreover, the short-term breakout indicated that the Bitcoin price will rise past $25,817. The analysts expect the price to hike up to $28k.
One cannot dismiss the point of view of analyst Markus that Bitcoin will increase to $28K. As many others also believe in Bitcoin’s potential to $30k price. However, they must exercise caution.
Network to Value Transaction (NVT) ratio is what determines an asset’s growth potential. To calculate one may divide a cryptocurrency’s market capitalization by its daily transaction volume. Bitcoin’s growth potential was also determined by NVT in relation to the circulation of Bitcoin. This indicates whether the asset price is overvalued or undervalued based on the network activity.
Recently the NVT was very high at 538 points and the high value is the indicator of higher network valuation as compared to the current value displayed on the network. So bitcoin is a bit overpriced right now, which is why investors need to be cautious before buying it.
Can Bitcoin actually make it through?
No matter what the NVT value dictates, with the whales’ interest intensifying you can expect a further uptrend in Bitcoin prices.
The Data from Santiment suggested that there has been an increase in the number of transactions occurring on the Bitcoin Network There is also an increasing number of whales buying a significant amount of Bitcoin which could be a sign of future prospects and confidence in the asset. And there is a reduced selling of the BTC holdings by the same whales which indicates a bullish outlook.
Many other indicators as well endorse Bitcoin to reach the level Markus stated.