Bitcoin hit $17,000 on Monday. InvestAnswers believes BTC is about to turn bullish based on realized value. The token faces resistance at $19,000 and the 50-day moving average.
Bitcoin prices (BTC/USD) rose slightly Monday as most cryptocurrencies recovered slightly. BTC’s move back to $17,000 came despite data from cryptocurrency derivatives exchange Deribit showing sentiment has shifted in favor of cryptocurrencies. But as that happens, one popular cryptocurrency analyst expects a rebound.
In-chain signals suggest BTC is overdue for a rebound, according to popular cryptocurrency analyst InvestAnswers. The pseudonym analyst examined bitcoin’s realized price, or RP metric, in making his argument. Typically, the RP publishes the value of all BTCS at the price at which the token was purchased, and then divides that by the number in circulation. InvestAnswers says BTC will never be lower than RP for long.
BTC has been under RP for 170 days, analysts said. In 2020, the BTC was below the reference price for eight days, compared with 115 days in 2018. It was 240 days in 2015 and 110 days in 2011. BTC’s RP is $21,000, according to analysts. He used the analogy that bitcoin prices are about to soar.
Beyond the RP, InvestAnswers said the growing weakness in the dollar index suggests a possible rebound. The index has a negative correlation with risky assets, meaning if it goes lower, the cryptocurrency goes the other way.
BTC price analysis and outlook in a small recovery
BTC is trading above 20-day moving average. The bulls have been winning the war at $16,000, although the bears have remained relentless. RSI remains below midpoint, bullish momentum looks weak but improving.
Bulls will next test at the 50-day moving average and resistance at $19,000.
