According to analysis by on-chain analyst Crazzyblockk, Bitcoin (BTC) bulls are facing a critical resistance zone above $30,000.
Bitcoin’s medium-term recovery depends on these breakeven zones
According to market expert Crazzyblockk, the $27,500 – $29,000 range is critical for Bitcoin to rise above $30,000. However, the situation is slightly different for short-term investors.
Crazzyblockk says there is huge long-term growth potential for Bitcoin, which has shown positive performance Year-to-Date (YTD). Analyst estimates are based on the market value to realized value (MVRV) ratio. MVRV ratio is a metric that shows the relationship between a coin’s market cap and its “intrinsic value.” The current situation at the time of writing is as follows:
As Crazzyblockk points out, the MVRV ratio is currently above 1. This ratio shows that the current market value is higher than the realized value. However, Crazzyblockk also emphasizes that the same cannot be said for short-term Bitcoin investors. For short-term investors, market distrust prevails and there is a huge disadvantage. According to their analysis:
We are still above level 1 on the MVRV Ratio and are operating on Actual Emissions Value < Market Value on an Owners' Cost basis.
Watch out for the $27,500 area
According to the analyst, whether Bitcoin (BTC) can reach the 30,000 level depends on the critical region between $ 27,500 and $ 29,000. This range determines whether investors will be “in the money” on an average cost basis. Crazzyblockk states that if more time is spent below these levels, the conditions for the return of the upward trend will become difficult.
In summary, arguing that Bitcoin has upward potential not in the short term but in the long term, Crazzyblockk makes an important warning: If Bitcoin spends more time below the specified levels, this may cause liquidity to be withdrawn from the market and therefore delay the return of the uptrend.
Therefore, the performance of Bitcoin price in the near future will largely depend on whether it can stay above the levels. For investors and market observers, this will be a period to watch closely.
Bitcoin’s price action shows an upward trend
Meanwhile, Bitcoin price action revealed that the price is making lower lows while the RSI is making higher lows. This type of difference is often observed when a pivot is occurring.
However, it is highly possible that whales are manipulating the market by acting contrary to expectations. In this case, this divergence may not be a very reliable sign that Bitcoin will continue its current rise.
Further downside remains a possibility, especially as volatility appears to be returning to the market. This is evident from the recent revival in demand in the options and futures segment. Both futures and options open positions have seen an increase in demand in the last five days.
Higher volatility encourages more whale activity. Therefore, it is worth noting that Bitcoin whales also buy it. However, uncertainties continue regarding the next interest rate decision of the US Federal Reserve (FED). Higher interest rates will likely cut short the current rally. cryptokoin.com We included expert opinions in this article.
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