Is It Finally Time To Buy Bitcoin ( BTC)? Key Indicator Turns Bullish
The Bitcoin On-Balance Volume (OBV) is an important accumulation-distribution metric that aids investors in making trade decisions. The crypto markets are witnessing a protracted period of accumulation for Bitcoin.
Despite the strong entry indication, some investors still await a lower price for the asset before making their move.
Nonetheless, analysts have noted that we could be seeing the end of the current accumulation period. Data from the BTC OBV metric supports this. As a consequence, a distribution phase is set to follow imminently, as the markets follow an uptrend.
Breakout in Bitcoin price OBV
Taking to Twitter, a pseudonymous analyst, Titan of Crypto, brought the community’s attention to the status of the OBV. Taking into account historical data from way back 2012, a breakout in the OBV’s trendline indicates an end to accumulation.
After surging above $1.1k in November of 2013, BTC began shedding the gains picked up in the past months as it marched to 2014. The bears took charge of the game until 2017 when the asset rallied, reaching a peak above $16k before cooling off. The distribution period began with a breakout of the OBV.
The same pattern was noticed in the accumulation periods of 2019 and 2020. As observed on the BTC OBV chart, the metric appears to be showing signs of a breakout. This could influence a rally above the $24k resistance level BTC has witnessed since mid-June.
Analysts expect BTC to end August above $28k
Additionally, the BTC Binary CDD metric currently shows a 0 value. This indicates a low LTH movement, implying that LTH of the asset are showing signs of holding their tokens further.
At the time of writing, BTC currently trades at $24,090, having increased its value by 4.8% in the past 24 hours. After plummeting from the $31k high it reached on June 6, the asset has been struggling to break the resistance at $24k. The month of June especially dealt a huge blow on its price, bringing it to as low as $17,708 on 18.
In the past 24 hours, BTC has been showing signs of an imminent comeback. The asset is currently holding steady its position at the $24k level, as the markets await the surge. The CMC community has predicted that BTC will likely end the month of August above $28k.
Back to the list