It hasn't been all rosy previously week, however the digital asset market has responded comparatively properly to the arrival of the brand new Donald Trump administration. Particularly, the worth of Bitcoin has been in a position to climate the unsure storm enveloping the cryptocurrency market in current days.
Whereas the main cryptocurrency might have slowed down in current days, the newest on-chain sightings present that BTC is more likely to proceed its rise. Right here is how the worth of the token could also be headed for additional development within the coming weeks.
Is there room for additional BTC worth development?
In a Jan. 24 put up on Platform X, market analysis agency Glassnode defined that the worth of Bitcoin just isnβt but overheating and nonetheless has the potential for additional development within the subsequent few weeks. This on-chain publicity is predicated on the Mayer A number of indicator, which is calculated because the ratio between the asset worth and the 200-day shifting common (200DMA).
The Mayer A number of measures the gap of Bitcoin's worth from its long-term common to estimate overbought and oversold situations. This metric can also be used to find out a macro bullish or bearish bias when analyzing cyclical worth actions.
Traditionally, the Mayer A number of indicators an overbought market and a possible worth prime when itβs above 2.4. However, a Mayer a number of worth beneath 0.8 signifies an oversold situation and that there may very well be a market backside.
Supply: Glassnode
In accordance with knowledge from Glassnode, Bitcoin's Mayer A number of is 1.37, indicating that the main cryptocurrency remains to be fairly removed from overbought territory. This piece of information means that BTC nonetheless has room for additional development on this cycle. Moreover, Bitcoin worth is not less than 35% above the 200-day shifting common, which is a bullish sign.
Glassnode emphasised that the worth of Bitcoin would wish to rise above $180,000 to turn into overbought. This worth degree represents a possible prime for the flagship cryptocurrency on this present cycle and may very well be adopted by a pattern reversal. With an oversold threshold at 0.8, the Mayer A number of locations the underside of Bitcoin's worth at round $60,000.
The value of Bitcoin hasn't been notably spectacular since breaking the $100,000 mark, resulting in cries of a worth prime available in the market. This indicator provides some perception into the potential path of the main cryptocurrency within the subsequent few months.
Bitcoin worth at a look
On the time of writing, Bitcoin is just under $105,000, reflecting no important motion over the previous day.
The value of BTC on the day by day timeframe | Supply: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
