Bitcoin Price Prediction: BTC looks toward $60,000 while building upon strong on-chain metrics

  • Bitcoin has broken above an ascending triangle pattern, targeting news all-time highs.
  • The uptrend seems to have been validated by the MACD cross on the 4-hour chart.
  • The drop in exchange balances remains persistent, suggesting that investors are holding long-term.
  • A correction may take place if Bitcoin fails to secure higher support above $54,000.

Bitcoin has in the past few days consolidated above $50,000, suggesting that it is enjoying stability in the market. Meanwhile, price action has not been progressive above $54,000, which continues to delay the uptrend to new all-time highs above $60,000. However, a strong on-chain front reveals that the flagship cryptocurrency is on the way to achieving the target above the coveted $60,000 level.

Bitcoin’s recovery  stems from key on-chain support levels

Glassnode’s UTXO Realized Price Distribution model illustrates robust on-chain support at $47,173. The green region represents a support block. Note that this vital support has not been this powerful since BTC exchanged hands at $11,000. Moreover, the range between $45,000 and $48,900 has transformed into the largest on-chain accumulation level in BTC’s history.

Bitcoin UTXO chart

Bitcoin UTXO chart

Transaction volume alone is not an exclusive indicator for accumulation because selling activity could also be high. However, Bitcoin Balance on Exchanges metric continues to drop, whereby roughly 35,200 BTC left the trading platforms over the last seven days. Exchange outflow is a bullish signal. It implies that investors prefer their coins to be illiquid. On the other hand, this means that supply in exchanges is dropping appreciably amid increased demand.

Bitcoin Balance on Exchanges model

Bitcoin Balance on Exchanges model

Consequently, on-chain data unveils that miners are currently bullish on Bitcoin. However, we have to keep in mind that they are natural sellers of BTC to cover operation and electricity expenses. The Miner Position Change metric tracks all the balance for the Bitcoin that has been mined recently.

The chart shows that miners started to sell less in February, and the rate has continued to shrink. In other words, they are going back to a neutral or an accumulation mode.

Bitocin miner change

Bitcoin Miner Position Change model

Bitcoin commence significant technical breakout

The flagship cryptocurrency is trading above a key ascending triangle pattern on the 4-hour chart. Trading above this pattern is a massive bullish signal because it has a 17% breakout target of $60,975.

An ascending triangle is a bullish continuation pattern., highlighting a period of consolidation before an upswing. It is also characterized by low trading volume during its formation, but the volume increases greatly on slicing through the x-axis.

The short-term technical picture shows that Bitcoin’s least resistance path is upwards. The Moving Average Convergence Divergence (MACD) cross above the signal line has confirmed its ongoing uptrend. The bellwether cryptocurrency needs to secure higher support, preferably above $54,000, to add credence to the anticipated upswing above $54,000.

BTC/USD 4-hour chart

BTC/USD 4-hour chart

A reversal will come into the picture of Bitcoin fails to hold onto support at $54,000. Retesting the triangle’s x-axis may lead to a rebound. However, if the price slices through the support, Bitcoin will drop to explore levels under $50,000. Note that the 100 Simple Moving Average (SMA) and the 50 SMA are in line to provide support above $49,000.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin adoption accelerates as coiling prices hint at explosive rally

Bitcoin price faces a stiff resistance wall that has prevented weak bullish momentum from passing through. As a result, a short-lived retracement has caused a majority of the market to follow suit despite BTC’s raging adoption and interest from institutions over the past week.

More Bitcoin News

VeChain upswing thwarted again as sell signals multiply

VeChain price shows an ambiguous outlook as it has set up a textbook uptrend with a series of higher highs and higher lows, but technical indicators hint at a downtrend.

More VeChain News

Judge reaffirms order SEC must produce documents on Bitcoin, Ether and XRP in Ripple case

Judge Sarah Netburn has restated that the Securities and Exchange Commission (SEC) must produce documents related to Bitcoin, Ether, and XRP amid the ongoing legal battle with Ripple Labs.

More Ripple News

Polkadot Price Prediction: DOT hints at minor retracement before resuming its rally

Polkadot price shows a slowdown in its bullish momentum that has resulted in sellers taking over. Now, a minor retracement could push DOT into a significant support barrier.

More Polkadot News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast