It has not been all rosy previously week, however the digital asset market has reacted pretty nicely to the beginning of Donald Trump’s new administration. Particularly, the Bitcoin worth has been in a position to climate the unsure storm clouding the cryptocurrency market over the previous few days.
Whereas the premier cryptocurrency may need slowed down in current days, the most recent on-chain remark reveals that BTC is more likely to proceed its upward motion. Right here’s how the token worth is perhaps gearing for one more leg up over the approaching weeks.
Is There Room For Additional BTC Worth Development?
In a Jan. 24 submit on the X platform, market intelligence agency Glassnode explained that the Bitcoin worth will not be but overheating and nonetheless has the potential for additional progress over the following few weeks. This on-chain revelation is predicated on the Mayer A number of indicator, which is calculated because the ratio between as asset worth and the 200-day shifting common (200DMA).
The Mayer A number of measures the space of the Bitcoin worth from its long-term common to estimate overbought and oversold circumstances. This metric can be used to determine macro bull or bear bias when analyzing cyclical worth actions.
Traditionally, the Mayer A number of indicators an overbought market situation and a possible worth prime when its worth is above 2.4. Then again, a Mayer A number of worth beneath 0.8 suggests an oversold situation and {that a} market backside is perhaps in.
Supply: Glassnode
In keeping with information 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 worth is at the least 35% above the 200-day shifting common, which is a bullish sign.
Glassnode highlighted that the value of Bitcoin would want to surge above $180,000 to turn into overbought. This worth 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 worth backside at round $60,000.
The Bitcoin worth has not been notably spectacular since surpassing the $100,000 mark, resulting in shouts of a worth prime available in the market. This indicator considerably gives perception into the potential path of the premier cryptocurrency over the following few months.
Bitcoin Worth At A Look
As of this writing, the price of Bitcoin sits just under $105,000, reflecting no important motion previously day.
The value of BTC on the day by day timeframe | Supply: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView