Metric analysis

Bitcoin ‘finally’ due for $32.8,000 as long-term BTC price metric flashes overvalued

Bitcoin (BTC) briefly rallied back to $30,000 ahead of Wall Street’s May 25 open as range buy-in persisted.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

Trader: BTC set to challenge 2-week highs

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD managed to hit $30,189 on Bitstamp before consolidating below $30,000.

While looking uninspiring at first glance, Bitcoin on short timeframes sparked new interest for Cointelegraph contributor Michaël van de Poppe, who predicted a run near $33,000 next.

“Bitcoin broke through $29.4,000 and raced towards the next resistance zone,” he said. Told Twitter followers.

“If we hold $29.4,000, we’ll be good towards $32.8,000. To finish.”

If realized, $32,800 would represent Bitcoin’s highest level since May 9 – just before Terra’s implosion triggered its cascade to its lowest level in ten months.

Fellow trader Nebraskan Gooner, meanwhile, saw a series of higher lows on the four-hour chart, highlighting $30,400 as “the line to beat.”

BTC Price Metric Indices Are “Overvalued”

Beyond the intraday price action, however, cold feet among many analysts remained.

Related: Biggest Difficulty Drop Since July 2021 – 5 Things To Know About Bitcoin This Week

For the CryptoQuant on-chain analytics platform, regarding the signs of the Network Transaction Value (NVT) Golden Cross metric suggested a retracement was coming.

Designed to catch local highs and lows, a spike from the NVT Golden Cross, as it happened that day, reinforced the idea that volume was not enough to maintain an upward trajectory.

“We have a significant shift in the NVT Golden Cross indicator where it reached its most overvalued position since April of last year ahead of the plunge to June lows,” CryptoQuant contributing analyst Kripto Mevsimi told Reuters. Cointelegraph.

As Cointelegraph reported, predictions for a generational low in BTC/USD included as low as $15,500 this week.

A new all-time high, meanwhile, may have to wait until 2024 when Bitcoin’s next halving cycle begins.

Bitcoin NVT Golden Cross chart. Source: CryptoQuant

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