The Bitcoin price has been trading sideways for some time and the positive momentum that marked 2023 so far seems to have disappeared for a while. If we are to believe a recent analysis by CryptoQuant, that may soon change. They see a number of factors on the blockchain that indicate positive price action for Bitcoin.
Can Bitcoin Break Out?
The main question, of course, is whether that will allow Bitcoin to break out of its sideways path and rocket upwards. MAC_D, an author and analyst at CryptoQuant, thinks Bitcoin is mostly resting right now before the next bullish rally begins.
Several on-chain indicators such as the MVRV and SOPR reveal that the past period has been a recovery phase. According to MAC_D, that should mean that Bitcoin can expect more positive price action in the long term.
Even if MAC_D looks at the hashrate and therefore at the activity of the miners, it looks good according to the analyst. Furthermore, the price is currently close to the purchase price for holders who have only had their Bitcoin for 1 to 3 months.
In the past this has been an important support point in the chart and it is expected that this price line will also provide strength this time.
Greed is declining
Another positive signal for the Bitcoin price is perhaps that greed in the market is decreasing. Where there was again talk of greed in recent months, the Fear & Greed Index has now fallen back to the level of 50/100. That means the market is currently neutral.
You often see that the price has difficulty climbing further if there is a lot of greed in the market. In that respect, it is a good sign that there is now a more neutral sentiment. The descent from greedy to neutral means that part of the market has sold in the past period.
This is also clearly reflected in the Bitcoin price, which struggled to regain the $ 30,000 mark. At the time of writing, Bitcoin is trading at $27,174 and is up 1.12 percent for the past 24 hours.
It seems that the price is currently consolidating for a while and that the market is waiting for new data or information before choosing a definitive direction.