Bitcoin 'ready' for $32.8K after consolidation as BTC price gains 6.3%
Relief endures despite a U.S. trading holiday, but worries over waning momentum in stocks means the short-term outlook remains gloomy.
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Bitcoin 'finally' due for $32.8K as long-term BTC price metric flashes overvalued
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Bitcoin (BTC) briefly returned to $30,000 before the May 25 Wall Street open as range adherence lingered.
Trader: BTC should challenge 2-week highs
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD managing to hit $30,189 on Bitstamp before consolidating back under the $30,000 mark.
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.”
#Bitcoin
— Nebraskangooner (@Nebraskangooner) May 24, 2022
Very interesting..
$30.4k the line to beat now. pic.twitter.com/8T7Iw1b62q
Metric hints BTC price "overvalued"
Beyond intraday price action, however, cold feat among many analysts remained.
Related: Largest difficulty drop since July 2021 — 5 things to know in Bitcoin this week
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.
A new all-time high, meanwhile, might have to wait until 2024, when Bitcoin's next halving cycle begins.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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