Bullish Signals for Bitcoin: Potential Upward Move to $38,600
Since the end of June 2023, Bitcoin (BTC) has been trading within a narrow range between $29,000 and $31,000. However, the latest on-chain analysis of the SOPR indicator suggests potential bullish signals for another upward move. Here are the key points:
- The Short-Term SOPR indicator shows a recurring pattern of upward movements in the first half of 2023, signaling bullish trends.
- The pattern involves aSOPR reaching highs, followed by lower highs and lows, consolidating the BTC price. Eventually, the SOPR drops and moves below 1 for a while.
- After a noticeable exhaustion of the downward trend, higher lows appear, and the chart starts to turn back upward.
- If this pattern repeats under current market conditions, BTC could experience another surge.
- The target for Bitcoin’s potential upward move is $38,600, based on the SOPR analysis and previous breakout periods.
If the bullish scenario plays out, BTC could rise as much as 35% in the next few weeks, with an important resistance level at $36,000 to overcome. However, if Bitcoin closes daily candles below $28,300, it may invalidate the bullish scenario and lead to a move towards the previous swing low at around $25,000.
Hot Take
Based on the analysis, it seems that Bitcoin has the potential for another upward move in the near future. The SOPR indicator and historical breakout periods indicate a possible surge of up to 35%, with a target price of $38,600. However, it’s important to monitor the market closely and watch for any signs of the bullish scenario being invalidated. As a crypto reader, it’s crucial to stay informed and make informed decisions based on the latest analysis.
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