Welcome to HODL.FM, it’s that moment again when we deliver Bitcoin insights for serious crypto traders, hodlers, and degenerates.
Here is what we have for you today:
- How is Bitcoin performing this week?
- Bitcoin’s near-term price forecasts
- Bitcoin’s 200-day simple moving average
- The 90-day MVRV ratio
Bitcoin Price Analysis of the Head and Shoulder Formation
Bitcoin price has consolidated support at $62724 on the 5-day TradingView chart. At press time, the leading coin is attempting to break out of a head and shoulder pattern formation whose neckline is $63,000, the shoulder is 63,607 and the head is $63972. The fact that the price has already broken above the neckline indicates some bullish momentum and eliminates any worries of a sell-off in the near term. As of this writing, BTC/USD is trading at $63428.
The 200-day Simple Moving Average
Guess what? The 200-day SMA just screamed its lungs out to alert yáll of a bullish trend around the corner. For a moment, it seems to say Hold on Dear Life, the moon is in sight.
Moreover, a key technical indicator has forecasted a bullish long-term thesis for the price of Bitcoin. The 200-day moving average on BuyBitcoinWorldWide hit its highest and is currently at $50,000.
The 200-day SMA sums up the 200 days leading to the closing price of Bitcoin and divides the total by 200 to determine short-term fluctuations so that traders can analyze a long-term trend.
In cases where Bitcoin’s price is trading above this indicator, the long-term trend is usually bullish. On the contrary, when the price drops below the moving average, and the long-term trend is bearish.
If the 200-day simple moving average was a fortune teller, it would signal a high-five whenever profits are up for grabs and point accusing fingers at you whenever a dangerous bear is marauding in the woods, saying, “Don’t say I didn’t warn you!”
Bitcoin’s MVRV 90-Day Ratio
On-chain analyst Ali Martinez wrote on X that Bitcoin’s MVRV 90-Day Ratio indicates Bitcoin is in a “prime buy zone.” The MVRV ratio is a metric that determines periods when the price of an asset is extremely overvalued or undervalued compared to its fair value.
As such, the metric allows traders and analysts to identify the extent to which Bitcoin’s price is overextended or discounted from a hodlers aggregate cost base.
In an interview with CNBC’s Squawk Box, Anthony Pompliano commented on the price of Bitcoin saying its present long-term thesis is strong as ever. A notion that is reinforced both by key indicators, the 200-day simple moving average and the 90-day MVRV ratio.
Bottom Line
Bitcoin’s sentiment is generally positive. The leading cryptocurrency by market capitalization recovered from a $56,500 intraweek low and closed the previous week at $64,000. This performance suggests the bulls are purchasing the dip, and they anticipate the prices to peak above the $74,000 ATH in the long term.
Moreover, we are hoping that ETFs will maintain record inflows in this and upcoming weeks, given that Grayscale has recorded its first inflows in 79 days. If this trend continuous, high chances of a bullish momentum exist on the sides.
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