With the market exhibiting “extreme fear,” Bitcoin’s price has been unable to move beyond the $26,500 to $27,100 range.
Despite its recent consolidation, BTC’s on-chain metrics are flashing signs of a major price movement, Glassnode co-founder Negentropic stated.
In an insight published on May 17, the analyst highlighted that the asset’s short positions are getting exhausted as the price holds longer which is a sign of upward price momentum.
Another crucial indicator is the failure of the price to break below the 50 and 200 Simple Moving Averages [SMAs], which are now acting as solid support levels that have withstood five tests.
He also pointed out the breach of the 50 SMA over the 200 SMA marking a golden crossover, a bullish signal that typically foreshadows short-term gains.
A golden cross is when a short-term moving average of prices rises above a longer-term moving average. Negentropic then discussed the tightening Bollinger bands, another sign of powerful price swings.
However, the Relative Strength Index, or the RSI is yet to show any signs of momentum to get the ball rolling as is currently in no man’s land.
The analyst also took note of the dollar market whose liquidity is slowly rising, holding the potential to ignite a significant movement in BTC.
Could this be the anticipated trigger for the $35k run?
Experts’ Big Bet On Bitcoin
Not long ago, leading analyst Ali Martinez observed that more than 20,000 BTC have left crypto exchanges in the previous 24 hours, suggesting that market participants are expecting the price to rise.
Vetle Lunde, a senior analyst at K33, had predicted that BTC might peak at around $45,000 in May due to the currency’s price trend resembling that of its early 2019 ascent.
Although the $45,000 forecast may not come true this month because Bitcoin’s short-term prospects look grim, long-term on-chain indicators have highlighted bullish trends and reflect the early phases of prior bull markets, as mentioned in Bitfinex’s latest analysis.
At the time of writing this article, Bitcoin is currently trading at $27,323, with a 24-hour trading range sitting between $26,590.05 and $27,416.89, according to Coinmarketcap.
The flagship cryptocurrency is up roughly 0.89%. The market cap stands at roughly $530.55 billion.