Can Bitcoin [BTC] be on course for another green weekend
- Analyst suggests that BTC may have a key breakout in the near term.
- The Bitcoin network value remains expensive relative to its price, but the coin could still hit an annual peak.
Since 2023 started, a number of weekends have served as springboards for Bitcoins [BTC] production of green bars.
Interestingly, the period 11-13 March last week was no different. But with the coin losing and regaining price levels at different intervals, what do the next few days hold for BTC?
How much is 1,10,100 BTCs worth today?
Well, a digital asset dealer named Markus Thielen on Twitter meant that BTC may not stop the movement at $26,000. Thielen based his assessment on his technical analysis. There he showed that BTC has long-term support.
Small beginnings can be met with obstacles
Moreover, the chart revealed that the medium-term downtrend may be over. And a short-term breakout at $25,817 was already underway. According to the analyst, BTC had the potential to end up at $28,000 soon.
There have been calls for the royal coin to reach $30,000 before any other major setbacks of late. So Thielen’s opinion could not be directly dismissed. However, enthusiasts with this view may need to exercise caution.
A calculation that proposed the above stance is Network to Value Transaction (NVT) in relation to BTC circulation. The publication NVT provides an overview of an asset’s growth potential. This is derived using the price-to-earnings ratio and the rate of daily circulation.
At press time, the Circulation NVT was extremely high at point 538. A high Circulation NVT indicates that an asset’s network value is higher than the current value displayed on the network.
So this means that the current BTC value was not cheap compared to the expensive network.
Will backup and support prevail?
However, the NVT condition did not completely cancel the possibility of a further increase for BTC. This was because whales’ interest in the coin remains intensified.
At press time, Santiment data knew that there has been a sustained increase in six to seven figure BTC transactions. Such a situation confirms buying pressure from this group. Moreover, the same whales had reduced the sale of some parts of their holdings such as reported lately.
According to the daily chart, BTC seemed in a prime position to follow through with the increase based on the Awesome Oscillator (AO).
The indicator helps to assess market momentum in relation to trend confirmation, reversal, weakness and strength. With AO at 1455.59, it means that BTC had enough support to reach the price level suggested by Thielen.
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Furthermore, the Directional Movement Index (DMI) also suggested a similar sentiment. At press time +DMI(green) was 39.03. And as backup was the Average Directional Index (ADX), which was at 27.10.