After quite a long period of time, the price of Bitcoin would seem to be really stable after a period of high volatility- and yet it hasn’t clarified where it is going next. The cryptocurrency has entered a period of dormancy after it went through a period of high volatility. Most of the metrics on-chain seemed to have turned bullish, yet the technical points are looking forward to more consolidation.
Bitcoin Presents Ambiguous Outlook
The Adjusted Spent Output Profit Ratio indicator ascended to quite a value, especially after the bull run which Bitcoin displayed back on the 8th of January. This behavior would imply that the uptrend shown by Bitcoin had finally exhausted its options. Following this, there was a pullback of about 31.60% which led to the staggering fall of the market value of Bitcoin to go below $29,000. Glassnode mentions that the downward price movement of Bitcoin assisted the indicator to reset itself for the first time since the previous year. This also entails that the correct period which bitcoin had come under- finally met its end.
According to reports, the bitcoin price has gone on to consolidate such a price, between a time period of four hours. If it were looked at from a technical perspective, the indicator index might actually end up helping this cryptocurrency rebound from its previous state at $33,500. Yet, it might be looking towards some resistance- which might also push the price of Bitcoin back to a support level of $31,000.
Based on the transactional history of Bitcoin, almost 140 million addresses have been purchasing around 860,000 BTC at a price range of $32,550, and $34,630. This supply barrier might just have the strength which would be keeping the price action of this digital currency at bay.