After Recent Peak, Bitcoin (BTC) Price Poised for Next Rally
Bitcoin’s recent surge near its all-time high faces a cooling of momentum; indicators suggest consolidation or minor correction. BTC DMI shows a decline in uptrend strength, with sellers currently outnumbering buyers as the ADX declines to 29.26. NUPL data reflects a cautious market mood, far from past euphoria, but most holders continue to take profits.
The price of Bitcoin (BTC) has shown a change in sentiment after recently reaching a level very close to its all-time high. The DMI shows BTC’s bullish momentum slowing, indicating reduced buying intensity.
Likewise, the NUPL, although still in a positive stage, shows a more cautious outlook among holders compared to the euphoria seen in previous cycles. These indicators suggest a period of minor consolidation or correction before a possible move to new highs, in conjunction with the BTC price chart.
BTC DMI Shows Sentiment Has Changed
BTC’s DMI chart shows that its ADX is now at 29.26. This is a decrease from over 40 days ago. The ADX measures trend strength without indicating direction. An ADX above 25 indicates a strong trend, while readings below 20 indicate weak or no trend.
The ADX has dropped from over 40. This indicates that the strength of BTC’s recent uptrend has weakened. The DMI uses two lines, D+ and D-, to indicate the direction of the trend. BTC’s D+ is currently at 20.6. The D- is at 24.5. This is an indication that sellers are currently stronger than buyers.
However, just a few days ago, BTC was in a stronger uptrend. With D+ above 40 and D- around 10, showing that buying pressure far outweighed selling pressure. Although technically the price of BTC is in an uptrend, the balance between buying and selling forces has shifted slightly, with D- outpacing D+.
Bitcoin’s NUPL Far from Euphoric Levels
BTC’s NUPL is currently at 0.529. This is slightly lower than the 0.546 level it reached a few days ago. The drop indicates a slight decrease in holders’ unrealized profits. This may reflect some recent profit taking or a pause in overall market optimism.
Despite the decline, BTC’s NUPL remains positive. This means that most holders are still making profits, but are approaching a more cautious sentiment. NUPL, or Net Unrealized Profit/Loss, is a measure that calculates the difference between unrealized gains and losses among holders and is an indication of overall market sentiment.
Although BTC’s NUPL has declined, it is still in the belief-denial phase and is currently well below the euphoria-greed level where extreme optimism historically occurs.
Bitcoin (BTC) Price Prediction
BTC’s price chart shows that its short-term EMA lines are positioned above the long-term EMAs, indicating an uptrend. This alignment suggests stronger recent momentum compared to the long-term trend, often a sign of increased buying interest and positive sentiment, preparing for more gains.
However, the narrowing gap between the EMAs signals that the bullish momentum has slowed in recent days. If the uptrend regains strength, BTC could target new highs above $73.618. Conversely, BTC could first pull back to test support at $65.503. If this level fails, a drop to $62.043 could follow, marking an 11.4% correction.
According to CryptoPredictions, the BTC price for today (11.02.2024) is forecast to be in the price range of $59,282.777 – $87,180.554. The Bitcoin price is forecast to end today at $69,744,443.
By Audy Castaneda