Bitcoin Price Consolidates; Potential Breakout Likely
- Bitcoin’s on-chain statistics reveal that network activity is rising.
- A positive divergence between network growth and BTC price indicates bullish momentum ahead.
- Bitcoin has passed the golden-cross indication for the third time in its history.
Investors are perplexed by the little price volatility as Bitcoin (BTC) has entered an intense consolidation and is now trading around the $29,000 mark. Bitcoin’s on-chain statistics, however, reveal that network activity is rising. The number of unique Bitcoin addresses is growing, despite the fact that the BTC price has dropped from $32,000 to $29,000 in recent weeks.
Fresh Start to Bullish Momentum
Furthermore, a consistent long-term increase in BTC price is suggested by the positive divergence between network growth and BTC price. Bitcoin’s bullish trend is also supported by other on-chain indicators. This suggests the current price drop may be temporary.
Bitcoin has passed the golden-cross indication for the third time in its history, as reported by crypto trading expert TradingShot in a post on TradingView from August 4. This might signal the start of a fresh bull run to new highs.
When the 50 DMA crosses over the 200-day DMA, this is known as a golden cross pattern. In general, this points to an upward tendency in respective cryptocurrencies. Also, in both prior occurrences of a golden cross, the price of Bitcoin subsequently rose sharply.
TradingShot predicted that Bitcoin’s next price objective will be its all-time high (ATH), or $69,000, based on prior Golden cross cycles. He speculated that by this time next year, Bitcoin’s price will have risen to roughly $69,000, the all-time high.
Moreover, Bitcoin’s halving in 2024 is expected to spark a new market cycle, analysts say. There are, however, near-term fears that Bitcoin’s price might fall to below $29k mark.
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