The crypto market has been on a roll lately as major cryptocurrencies like Bitcoin have witnessed significant price swings in the last few days. The Bitcoin price trend has been stuck in a choppy range as it swings sideways with 1% volatility, creating a blurred vision for long-term holders.
The primary reason behind this intense volatility is the recently released report on job growth by the US, pumping the dollar and weakening the BTC price. Hence, it caused a shift in investors’ sentiments and questioned whether Bitcoin price would form a dip next week or make a bullish reversal.
BTC On-Chain Metrics May Create Turmoil
As the US economy provides a bullish job report which strengthens the dollar, it creates a weakening situation for several crypto assets, including Bitcoin. Several analysts believe that Bitcoin is unlikely to witness a fresh bullish cycle in the next two weeks.
According to the on-chain analytics firm, Glassnode, the number of BTC addresses with a non-zero balance witnessed a spike of 300K on 2 February. A similar spike in BTC addresses was seen just after the collapse of the FTX exchange, which indicated the escape of BTC owners from a centralized exchange to a self-custody one.
If the non-zero BTC addresses continue to rise at the same pace, it may touch an all-time high by the end of February. Moreover, the analytic firm suggests that an influx of interest from investors in jumping on the BTC bull ride may create a massive concern in the Bitcoin market as it may develop a profit-taking sentiment among investors, resulting in a significant price drop in the BTC price chart after attaining a bullish goal.
Bitcoin Price To Form A Correction Next Week
Though Bitcoin has made a steady climb since the beginning of the new year, it is now facing several bumps on its upward trajectory, developing a slowdown in the price chart. As a result, it is predicted that the BTC price will be preparing for a downward correction by next week before entering into a bullish cycle.
As of writing, the BTC price hovers near $23,435, with a minor uptrend in the last 24 hours. A prominent crypto analyst, Solldy, predicts a short-term downward retracement in the BTC price chart as the RSI forms a bearish divergence with the current price trend.
The analyst mentioned that Bitcoin might consolidate longer near the $23.5K price level to gain enough selling pressure before dropping heavily. By the next week, the BTC price may form a support level below its 0.23 Fib level at $22.8K.
After that, Bitcoin is projected to witness its seventh golden cross, which may spark a lasting bull run with excellent medium to long-term buy signals after this minor downtrend.