Bitcoin 'finally' due for $32.8K as long-term BTC price metric flashes overvalued
An uptick to two-week highs is on the cards but longer timeframes still trouble Bitcoin analysis.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Trader: BTC should challenge 2-week highs
While appearing uninspiring at first glance, Bitcoin on low timeframes was a source of fresh interest for Cointelegraph contributor Michaël van de Poppe, who predicted a run to near $33,000 next.
“Bitcoin broke through $29.4K and ran towards the next resistance zone,” he told Twitter followers.
“If we hold $29.4K, we’ll be good towards $32.8K. Finally.”
$32,800 would represent Bitcoin’s highest since May 9 — just before the Terra implosion sparked its cascade to ten-month lows.
Fellow trader Nebraskan Gooner meanwhile eyed a series of higher lows on the 4-hour chart, highlighting $30,400 as “the line to beat.”
$30.4k the line to beat now. pic.twitter.com/8T7Iw1b62q
— Nebraskangooner (@Nebraskangooner) May 24, 2022
Metric hints BTC price “overvalued”
Beyond intraday price action, however, cold feat among many analysts remained.
For on-chain analytics platform CryptoQuant, concerning signs from the network transaction value (NVT) Golden Cross metric suggested a retracement was incoming.
Designed to catch local tops and bottoms, a spike in NVT Golden Cross, as was occurring on the day, reinforced the idea that volume was not sufficient to sustain upwards trajectory.
“We have a significant change in the NVT Golden Cross indicator where it has reached its most overvalued position since April last year before the dip to the June lows,” CryptoQuant contributing analyst Kripto Mevsimi told Cointelegraph.
As Cointelegraph reported, forecasts for a generational bottom in BTC/USD included as low as $15,500 this week.
Bitcoin NVT Golden Cross chart. Source: CryptoQuant
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