Bitcoin (BTC) Price Prediction: Despite Market Downturn, Metrics Suggest an Upcoming Rebound

Over the past month, Bitcoin [BTC] has defied all market predictions. In fact, it has continued to decline despite, market expectations for a rebound.

Over the past month, Bitcoin (BTC) has defied market expectations by continuing to decline despite anticipation of a rebound. At the time of writing, BTC was trading at $54,439 after a 6.5% decrease over the last seven days. In total, the king crypto has declined by 10.85% over the last 30 days. This decline was accompanied by a 65.23% decrease in trading volume, which now sits at $16.1 billion on daily charts.

Despite the sustained decrease in price, the prevailing market sentiment remained optimistic with analysts eyeing a rebound. For instance, Bittel Julien, a popular crypto analyst, suggested an upcoming rally by highlighting the 2019 cycle.

In his analysis, Julien highlighted the sustained consolidation phase, which, according to him, has lasted 175 days.

According to Julien’s analysis, if BTC follows the same script, it will result in upward movement. In 2020, BTC shifted from $7,200 to $10,000 after the long consolidation. It declined later on, but this was attributed to the pandemic. Thus, the analysts are eyeing an upcoming rebound after the long consolidation.

If history is any indicator, we might be on the brink of either a substantial breakout or a continuation of the consolidation pattern.

What BTC charts are saying now

While Julien highlighted one key indicator suggesting a potential reversal, the question is, do the other metrics agree?

Over the past week, large holders inflow experienced sustained growth from a low of 1.76k to 11.57k at press time. Since investors are buying during the market downturn, it suggests they are eyeing the dip.

The market behavior indicates accumulation signaling the investor’s confidence in potential future price gains. This is a bullish signal and increased accumulation results in buying pressure which pushes prices up.

Additionally, the fund flow ratio increased over the past week. An increase in fund flow indicates capital inflow is greater than outflow. Such a market habit suggests increased buying activity which leads to upward price movement. This usually reflects growing optimism among investors as they expect further gains.

Finally, the NVM ratio increased from 1.4 to 2.05 over the past 7 days. This shows long-term holders are still holding despite the price decline.

Such market behavior suggests confidence among long-term investors. Coupled with current market favorability, BTC is well positioned for a reversal above the $56K resistance level.

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