The lawsuit between the US Securities and Exchange Commission and Ripple has reached a conclusion for now. After that, the Bitcoin price took a break from sideways trading. The decision has doubled the price of XRP in a matter of hours. It has also caused other altcoins to rise with excitement. BTC was no exception as it ended its 23-day consolidation. So what’s next for Bitcoin? Crypto analyst Akash Girimath is looking for the answer.
Bitcoin price shows signs of recovery
Bitcoin price indicates that the bulls are back, at least for now. But “will buyers remain optimistic as XRP excitement dissipates?” The question still awaits an answer. Regardless, let’s take a look at BTC’s three-day chart to determine where it goes next.
Not much has changed on the three-day chart for bitcoin price; The weekly bearish breaker stretching between $29,247 and $41,273 still poses a threat to the bulls. The upside targets at $35,260 and $41,273 are the midpoint and upper bound of the ‘bearish breaker’. In other words, good profit taking levels for the bulls.
The barriers mentioned above are where bears can attempt a coup and regain control. However, if Bitcoin price decisively flips the $40,000 psychological level on the weekly timeframe, this will be a highly bullish development that could rekindle the 2023 rally. A bearish breaker occurs when the last bearish candlestick(s) between two highs break to the downside and turn into obstacles. A subsequent pullback causes trapped holders to sell their holdings. This triggers a bearish move.
On-chain metrics continue to rise, but…
The 365-day Moving Average (MA) and 365-day Market Cap to Realized Value (MVRV) metric shows that Bitcoin price is closer to observing a new bull cycle. We use this indicator to measure the average profit and loss of traders who bought BTC in the past year.
When this indicator is above 3.7, that is, in the red band, the asset is considered overbought. That is, it is typically when the market is peaking. Similarly, if the 365-day MVRV is below 1, it indicates that the Bitcoin price has made a potential bottom. That is, it signals that a trend reversal is likely. So far, the MVRV rate has fallen into the green band. It also jumped to 1.48, where it is now, which indicates that the new uptrend may be in action.
The next important metric to look at is the total percentage of Bitcoin supply in profit. From a historical perspective, market or cycle bottoms occur when this indicator shows 45% or less. Currently the indicator shows about 79%. The last time that so many investors were in profit was May 2022.
The outlook for bitcoin price remains largely bullish on the higher time scale. However, investors should keep in mind that Ripple’s victory over the SEC was a short-lived scam. Investors getting together and booking profits can undo recent gains. This is also likely to initiate a decline. Should BTC drop to $29,872, the bullish thesis will be invalidated. It is possible for such a development to cause a 15.72% collapse to the $25,205 support level.
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