Will Bitcoin (BTC) have enough strength to make a breakthrough to $33,000
Date: 2023-07-25 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
On July 13, the price of bitcoin (BTC) updated its annual high, breaking above the $31,500 mark. However, the wave of profit-taking led to another pullback below $30,000.
Despite the volatile price dynamics, long-term investors continue to hold their positions. Let's figure it out, bitcoin has enough strength for another breakthrough.
Bitcoin is approaching oversold territory
The Relative Strength Index (RSI) readings hint that the BTC price correction may soon come to an end. As shown in the chart below, Bitcoin's daily RSI is currently at 41. This means that it is now closer to the oversold mark of 30 than to the overbought mark of 70.
Strategic investors may interpret this as a signal to take bullish positions on BTC ahead of the next price rally.
Long-term holders continue to "hodl" BTC
According to the analytical platform Santiment, long-term investors maintain a stable position, despite the recent correction in the price of bitcoin.
As shown in the chart below, in the period from July 8 to July 24, the Mean Coin Age indicator increased by 2% - from 2631.06 to 2685.02. This metric calculates the average number of days that coins in circulation have spent at current addresses.
Given the progress made by various institutional companies applying for a spot Bitcoin ETF, Mean Coin Age's steady rise could be an early signal of momentum amplification that will allow BTC to break through the $33,000 resistance level.
Bitcoin Price Prediction: Decline to $28,000
On-chain data from the IntoTheBlock platform indicates that BTC could fall to $28,000 before moving up again. The 720,000 addresses that purchased 573,440 coins at this price will provide him with significant support. But if they do not resist, the asset may retreat to the $27,500 mark.
If the bullish forecast is realized, the price of bitcoin may reach $33,000. However, if the 2.66 million wallets that bought 1.02 million BTC at an average price of $30,300 want to take profits, the rally will slow down significantly.
