Longer Bitcoin fix cannot be ruled out
Over the past week, Bitcoin has seen a slight drop in prices. Lately, bulls in the cryptocurrency market have been dropping and, given their $ 51k valuation at the time of this publication, a question on most traders’ minds is whether or not BTC will recover levels close to $ 62k in the coming weeks.
While Bitcoin’s credentials as a long-term asset remain unquestionable, as for its short-term performance, will the market see an even greater drop in price before a recovery?
Source: Santiment
You market data provided by Santiment highlighted how the arguments for a bullish divergence are quickly disappearing due to the circulation assessment of the largest cryptocurrency in the world. The low rate of currency circulation observed after Bitcoin fell below $ 52,000 painted a bearish outlook for BTC in the short term.
According to the data provided, this proportion of currency circulation was last seen in September 2020, a period during which the cryptocurrency price suffered a prolonged period of lateral movement.
Source: Glassnode
While this has been the case, investors appear to be increasingly confident of a short-term recovery. In fact, the data suggested that price expectations for Bitcoin in April are high, with many investors confident that a $ 80k valuation could be carried out by then.
There are a large number of calls expiring on April 31 that estimate that the price will reach the $ 80,000 mark, giving Bitcoin a little more than a month of time not only to recover, but also to establish a new ATH for quite some time. margin.
Source: Santiment
While it cannot be predicted with certainty how the market will respond in the coming weeks, there are signs that a major BTC correction cannot be ruled out. Address activity for BTC continues to rise on a long-term trajectory, despite the low price and general uncertainty dictating market sentiment at the moment.
In fact, Santiment pointed out that Bitcoin’s latest 1.24 million 24-hour active address output was only a month high and it can be argued that such market fundamentals can lend a hand when it comes to a rapid price recovery on the charts.
Taking a look at the currency’s volatility level in the past 6 months also suggested that a good amount of price movement can be expected from Bitcoin. In the coming weeks, a period of lateral movement could seriously curb the currency’s upward aspirations.
In addition, according to BitPremier data, the BTC’s 30-day volatility was around 4 percent and, although it is low compared to the previous month’s BTC volatility, it can be argued that there is not enough momentum in the market, along with volatility, to trigger a trend reversal.
Source: AMBCrypto
