Bitcoin prices have soared high for the first time in weeks, going beyond the $40,000 level on May 26th and the 27th, despite China’s crypto ban concerns coupled with the United States crypto tax proposal, traders are once again back in business. At the time of writing this article, the crypto markets have witnessed something of a setback with approximately 10% of the value being removed from the crypto markets.
On the other hand, renowned analysts Cheds and Korous AK are expecting Bitcoin to hit 42,000 in the short term, but also recommended not getting too bullish until the market confirms a bullish breakout. This is most likely to be indicated with a large period of stability.
According to Cheds, who showed a bullish conviction, advised against turning too bullish unless Bitcoin, which is currently back down at the $37k level, reclaims its 200-day Moving Average. If so, the latest wave will serve as a strong standard for lower prices, offsetting any long-term bearish trends in the future.
Additional support for a bullish market trend came in the form of on-chain data, showing at least three metrics, focused on blockchain, implying that Bitcoin had reached its lowest point after crashing lower than $30,000 on May 19.
On May 26, the on-chain analytics platform Glassnode showed the drop of the total crypto address trading Bitcoin on crypto exchange platforms within the day. Quite a few addresses declined on an average 7-day timeframe.
Known as the “Addresses Depositing to Exchange”, the metric shows the total number of Bitcoin traders that transfer the crypto to exchange platforms to sell or trade for other digital assets. The Glassnode metric showed a decline in Bitcoin depositors, indicating a downtrend in panic-selling.
Bitcoin’s NVT, network-to-value-transaction output in an average 7-day has dropped to 14 months, according to Glassnode data. Bitcoin’s NVT signal reached 500 on the chart, implying a bullish reversal in the Bitcoin market.
Another Glassnode metric known as “Accumulation Addresses”, recorded a total of 545,000 addresses on a high exchange rate of $30,000, a sign that Bitcoin bears have exhausted their attempts at selling.
