Bitcoin’s post-halving price action is expected to see a “six-figure valuation” per BTC, a popular technical indicator predicting a bullish pattern for the world’s largest cryptocurrency.
Bitcoin (BTC) recently fell below $50,000, trading below its “post-halving growth trajectory range,” according to cryptocurrency data provider Ecoinometrics, based on previous price action.
“If we get back to this range before the end of the year, we have a high chance of 1 BTC being worth six figures,” they declared, setting an ambitious target for the Bitcoin price.
“Well, assuming the same growth rate as the last 3 cycles, we expect 1 BTC to be between $140,000 and $4,500,000 per coin. Starting at $63,000.”
From a technical standpoint, anonymous Bitcoin analyst Rekt Capital argued that there has been a significant change in trend as Bitcoin recovered above $60,000.
“Bitcoin is trying to solidify the recently broken downward resistance line (red) into a new support trend line,” Rekt Capital said in a post on X on August 12.
The analyst noted Bitcoin’s sharp recovery in the days following its plunge to $49,577 on August 5.
Rekt Capital explained that the price is retesting support and that “the downtrend is over and the uptrend is likely to continue.”
“The important thing here is the continuation of the trend.”
The analyst stressed that “strong buying volume” is needed if Bitcoin price is to retest the downtrend line and start an uptrend.
As Bitcoin analyst Exel Adler Jr. observed, demand-side volume can be triggered when bullish signals are provided by the Moving Average Convergence Divergence (MACD) indicator on the daily chart.
MACD is a trend-following oscillating indicator that shows the relationship between two moving averages of an asset’s price, generating a bullish signal when it rises above the 9-day EMA.
In a post on August 13, Adler Jr. shared a chart showing the MACD deeply in negative territory. The same scenario was witnessed on July 8, when BTC reached a low of $53,550.
This was followed by a bullish crossover on the MACD on July 12, and Bitcoin rose 30% from these lows to retest the $70,000 level on July 29.
There is an impending bullish crossover on the MACD on the daily timeframe. If the same scenario unfolds, BTC could sustain its recovery and make higher highs.
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Bitcoin Investors Return to ‘Holding’
Analysts at market intelligence firm Glassnode have strengthened their long-term bullish outlook for bitcoin, noting that “holding sentiment is starting to emerge” among long-term investors as the market slowly recovers from last week’s selloff.
Glassnode analysts said:
“After months of relatively massive circulation pressure, Bitcoin holders’ behavior appears to be returning to HODLing and accumulating.”
The chart below shows that after a long period of supply redistribution, Bitcoin whales are “returning to an accumulation mode.”
Glassnode used the Accumulation Trend Score (ATS), an indicator that evaluates the weighted balance changes across the market, and found that this indicator hit its highest possible value of 1.0, suggesting that there has been significant accumulation over the past four weeks.
“This indicator also suggests a shift toward accumulation-dominant behavior.”
This trend is more pronounced among long-term holders (LTH) who prefer HODLing, according to Glassnode. Over 374,000 BTC have been transferred to LTH status in the last 90 days.
“Overall, the on-chain conditions speak to a high level of confidence among the Bitcoin holder base.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.