Not just the crypto market, even the financial markets are in a state of flux. Investors and market experts are waiting to hear what the Federal Reserve will do to tackle rising inflation. The Russia-Ukraine situation is still unresolved. All of these and other factors are keeping Bitcoin prices static at or around the $44,000 level.
Many analysts say that there are indications that BTC will possibly break out and touch new highs. If it can be supported and remain steady at the $42,000 level for a little bit, it can result in a sustained bull market. Here is a list of items that analysts are watching closely while trying to deal with inflation and war.
OBV or on-balance-volume is an indicator of momentum. It uses volume flow to project possible asset price changes. This factor is important as it indicates that Bitcoin shows all the necessary signs for a bullish reversal. The upward trend is possible only if BTC can hold steady at the $42,000 level through market turbulence.
It also looks like BTC prices could be higher by 25% if the projected momentum is taken into consideration. According to Caleb Fransen, a Twitter user and keen investor, a full oscillation occurs between overbought and oversold. This is a good sign that an upward momentum thrust is due. He said this has happened at least half a dozen time with Bitcoin since the start of 2020. Bitcoin’s market cap of the crypto market currently stands at 42%. Bitcoin has to secure a strong close at the end of a week for prices to edge upwards.