- The drawdown investors faced in April has been steadily reversing itself
- Short-term bias was strongly bullish, and $107.5k and $110k may be feasible price targets
Bitcoin [BTC], at the time of writing, was trading above the key short-term resistance levels at $93.1k, while also managing to surpass $95.3k. The former was the short-term holder realized price. The latter was the high of a range that BTC has traded within over the past five days.
Crypto analyst Willy Woo has a bullish outlook, and he expects a BTC move to $108k next. The liquidation heatmaps agreed too, projecting a $107k target. In fact, the on-chain metrics highlighted a recovering market that has survived the bearish reset.
Bitcoin has sailed smoothly past the market drawdown, holders reaping the rewards
Source: Glassnode
In a Glassnode Insights post, the MVRV Bands around the 1.74-level was highlighted as a level that has acted as support. BTC’s drawdown during the August 2024 yen carry trade unwind halted at this level.
The MVRV bounced off the 1.74-level after testing it on 8 April, hitting 2.14 at press time. This showed that Bitcoin has survived another reset and reflected bullish conditions once more.
Source: Glassnode
Similarly, the percent supply in profit oscillator also recorded a bounce from its long-term mean at 74.8%. This metric displays whether coins are at a profit or loss, compared to their cost basis. The bounce of the past two weeks reflected the August-September 2024 trend.
At press time, the 7DMA of percent supply in profit was at 87% – Another indication of bullish investor expectations.
Source: Coinglass
The 6-month liquidation heatmap revealed that the liquidity pockets to the south were scant. The major levels were $83k and $74.1k, a long way away from the market price. To the north, the $100k, $106.8k, and $110.2k seemed to be the next noteworthy magnetic zones.
At press time, the $96.6k liquidity cluster had already been swept up as the price broke out of a short-term range formation.
Source: BTC/USDT on TradingView
This breakout came alongside high trading volume. The $95.4k level might see a retest, which would provide swing traders a buying opportunity.
If the on-chain clues prove right and the market reset is over, expect a BTC surge beyond $100k in the coming days.