The Bitcoin price is manifesting a huge possibility of expanding all its gains and eventually leading towards the said target above $40,000 shortly. The on-chain metrics say that despite the asset hitting the lower support a couple of times, the probability of soaring is not completely vanished. The BTC price may hover close to $40,000 yet it appears to be preprogrammed to hit the upper resistance levels very soon.
As per the on-chain analytical platform, CryptoQuant, Bitcoin 30-day NVT Ratio, which is the ratio between the market cap and the daily trading volume has smashed a 10-year low. Meaning, the investors are currently pricing the asset at a discounted rate. A lower NVT ratio signifies the current phase with the accumulation, market bottoms, and upcoming markets. Basically, it is a bullish indicator.
However, this jump may take some more time as the taker-buy-sell ratio which is an average of the buying and the selling volume. Currently, the indicator just surged above which may display the possibility of starting another uptrend after consolidating for some time. The BTC price may continue with the correction and consolidation for another 10 days where the market is primed to move sideways in between $30K and $40K.
But definitely, it is not the correct time to just jump in looking at the indicators and fall into the FOMO trap. The Bitcoin price is yet again hovering below $37,000 residing around $36,400 with a notable plunge of 5.56% compared to the previous close.
The asset after hovering within a rising wedge fell down the cliff and an inch close to the immediate support at $36,186. Therefore, continuing with the current trend, the asset is expected to hover throughout Q1 2022.
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