The crypto market has been on a roll of late, as major cryptocurrencies like Bitcoin have seen significant price swings in recent days. The Bitcoin price trend has been stuck in a choppy range as it swings sideways with 1% volatility, creating a blurry view for long-term holders.
The main reason behind this intense volatility is the recently released report on job growth in the US, boosting the dollar and weakening the price of BTC. Thus, it caused a change in investor sentiment and questioned whether the Bitcoin price would fall next week or make a bullish reversal.
BTC On-Chain Metrics Can Create Confusion
As the US economy provides a bullish jobs report that strengthens the dollar, it creates a weakening situation for several crypto assets, including Bitcoin. Several analysts believe that Bitcoin is unlikely to witness a new bull cycle in the next two weeks.
glass node
According to on-chain analytics firm Glassnode, the number of BTC addresses with a non-zero balance witnessed a 300K surge on February 2. A similar spike in BTC addresses was seen right after the FTX exchange crash, signaling the escape of BTC owners from a centralized to a self-custody exchange.
If non-zero BTC addresses continue to rise at the same rate, they may hit an all-time high by the end of February. Furthermore, the analytics firm suggests that an influx of investor interest in riding the BTC bull may create major concern in the Bitcoin market as it may develop a profit-taking sentiment among investors, resulting in a significant drop in BTC prices. price chart after hitting a bullish target.
Bitcoin price to form a correction next week
Although Bitcoin has been on a steady climb since the start of the new year, it is now facing several bumps in its upward trajectory, developing a slowdown on the price chart. As a result, the BTC price is forecast to prepare for a downward correction next week before entering a bullish cycle.
At the time of writing, the price of BTC is hovering around $23,435, with a minor uptrend in the last 24 hours. A prominent crypto analyst, Solldy, is predicting a short-term pullback to the downside on the BTC price chart as the RSI forms a bearish divergence from the current price trend.
The analyst mentioned that Bitcoin could consolidate longer near the $23.5K price level to get enough selling pressure before falling heavily. For the next week, the BTC price may form a support level below its 0.23 Fibonacci level at $22.8K.
After that, Bitcoin is anticipated to witness its seventh golden cross, which may trigger a long-lasting bull run with excellent mid to long-term buy signals after this minor downtrend.
This post Bitcoin is likely to witness a bumpy ride next week! On-Chain Metrics Suggest Short-Term Suffering for BTC Price
was published first on https://coinpedia.org/bitcoin/bitcoin-will-likely-witness-a-bumpy-ride-next-week-on-chain-metrics-suggest-short-term-suffering-for-btc-price/
