Although Bitcoin (BTC) has lost its good support of 2023, it does not necessarily mean that the price of BTC can turn more negative as many analysis. Here are some positive perspectives worth considering.
RARE DAILY FRAME LOW DIFFERENCE SIGNAL HAS BEEN AGAIN
If you observe the Bitcoin price line as a line (calculated by the closing price) and combine it with the RSI indicator, you will notice the bullish reversal signal confirmed yesterday.
Bitcoin price analysis with line chart and 1D frame RSI indicator. Source: Eralp Buyukaslan/CryptoQuant.
Bitcoin’s correction during the 2023 recovery is all predicted by a peak RSI divergence as above. Similarly, a reversal signal ending the drop in 2023 is also forecasted by a bottom divergence.
Yesterday, as BTC rallied back to $26,700, this price behavior confirmed the closing price of completing a bottom divergence. It can be seen that this is a rare bottom divergence that reappeared after nearly 6 months.
With this signal, the trader still has a reason to buy with a stop loss when BTC price falls deeper than the low of the last day’s candle.
THE BEST BUYING OPPORTUNITY OF 2023 IS HERE
Realized Price (real price) can be understood as the average cost price of Bitcoin investors. It acts as a moving average that acts as support and resistance of the onchain data. MVRV (Market Value to Realized Value) is the ratio between market capitalization and actual capitalization. The higher this ratio, the higher the willingness to sell of investors, and vice versa.
Bitcoin price analysis with MVRV indicator and Realized Price. Source: maartunn/CryptoQuant
Looking at the chart above, @maartunn thinks that Bitcoin is likely to make a short-term bottom or bottom.
The first proof is that the current BTC price is approaching the real price (red line). It can be seen that from 2022 until now, BTC above or below this average cost price line all reacted very effectively. That cost price is in the $25,000 region.
Second, the MVRV ratio of short-term investors is decreasing sharply in May and is approaching the balance zone. Short-term holders are still holding on to profits (although they have decreased) but on the other hand it can stimulate demand for those who have not been able to buy before.
As such, either the current BTC price zone could be a major bottom or at least a short-term bottom represented by a definite recovery response when approaching the average cost. Therefore, it is not time to be too pessimistic to miss the best new trading opportunity of 2023.