Bitcoin (BTC) Price Prediction 2022: Will the King of Crypto Bounce Back?

Bitcoin [BTC] was in a tough position at press time. The spot ETF inflows were negative and the recent sharp price drop caused large liquidations.

Bitcoin [BTC] encountered difficulties on several fronts at press time.

The spot ETF inflows were negative, and the recent sharp price drop led to large liquidations. The massive outflow of BTC from Binance also did not help the market sentiment.

Source: BTC/USDT on TradingView

On the weekly chart, the market structure was still bearish. A new high was not achieved, and the king of crypto formed a series of lower highs since April. Could traders be setting up for more weakness?

The Bitcoin Golden Cross trend

Source: CryptoQuant

In a post on CryptoQuant, crypto analyst Burrak Kesmeci observed that the peaks of the Bitcoin NVT Golden Cross were in a downward trend over the past six months.

The values of the peaks fell from 3.17 on the 31st of March to 1.46 on the 26th of August.

The Network Value to Transactions (NVT) Golden Cross metric compares the short-term and long-term trend of the NVT metric, giving a Bollinger Bands-like signaling indicator.

Values of above 2.2 indicate the network is likely overpriced, while values under -1.6 signal a market bottom.

The decline in the peak values since late March is a sign that Bitcoin may be undervalued relative to its transaction volume and presented an accumulation opportunity.

It also highlighted the bulls’ inability to force a breakout past key resistance levels such as $70k.

On-chain data supports the bullish side

Source: Santiment

The 180-day mean coin age continued to trend upward since late March, even though the weekly market structure turned bearish in recent months.

Read Bitcoin’s [BTC] Price Prediction 2024-25

Also, the past month saw strongly positive social media engagement, even though the Bitcoin price trend was choppy.

The MVRV was negative to show holders were at a loss and that the asset was likely undervalued. Meanwhile, the daily active addresses metric has been stable since June.

The above is the detailed content of Bitcoin (BTC) Price Prediction 2022: Will the King of Crypto Bounce Back?. For more information, please follow other related articles on the PHP Chinese website!