Bitcoin Surges 13.2% In Six Days, Analysts Predict Mixed Trends
1min read Bitcoin has experienced a significant price surge, with a 13.2% increase over the past six days, pushing its value above the crucial short-term level of $81,000. This level had previously acted as strong support in mid-March but transitioned to resistance in early April. Despite this bullish movement, renowned market analyst Peter Brandt suggested that the current rally is more corrective than impulsive, according to the Elliot Wave theory. Brandt predicted that the recent bounce could be followed by a deeper price drop, with a target range of $72,000 to $74,000 identified as a potential "max pain accumulation target."
The taker buy/sell volume indicated a long/short ratio of 1.04, meaning 51% of the taker volume was long, which points to some short-term bullish sentiment. However, the question remains whether Bitcoin bulls can sustain this momentum or if the corrective phase prediction will materialize.
For long-term investors, the insights from crypto analyst Axel Adler Jr are particularly relevant. Adler Jr observed that the Bitcoin Realized Value to Transaction Volume ratio (RVT) may be on the verge of triggering a bullish signal. The RVT is a counterpart to the Network Value to Transaction Volume (NVT) ratio, but with higher conviction. Both ratios are similar to the P/E ratio used for valuing companies and their shares. The RVT uses the realized cap instead of the market cap in its calculation, making it less volatile.
The RVT metric’s 30-day moving average was at 20.5, and its ascent beyond 22 generally marks an accumulation phase. This would indicate that a large amount of capital on the network is not participating in daily transactions, signaling accumulation. Additionally, Bitcoin’s realized pricing bands also signaled a potential price bounce towards $105,000 or higher. Over the past two weeks, they bounced higher from the 1.7RP at $74,600. The previous time the 1.7RP was tested was in September, and in the following months, a bounce beyond the 2.4RP materialized. Whether Bitcoin will continue the current corrective phase and retest $74,600 before such a bounce is unclear right now. However, a Bitcoin accumulation phase is also something that might affect the price trends positively.
