Bitcoin Could See Another Rally Beyond $29K as Balaji Strikes Again

Pathik Bhattacharya
Pathik Bhattacharya
Published on March 23, 2023 11:52 AM

Bitcoin slides down $28,000 as the market remains speculative. The on-chain data shows that a rally is nearby.

Bitcoin Could See Another Rally Beyond $29K as Balaji Strikes Again
Source: Unsplash

Former Coinbase CTO Balaji Srinivasan has warned cryptocurrency investors that they may only have a few weeks, if not days, to acquire Bitcoin and move their cryptocurrencies from exchanges. This warning comes after Kraken, a well-known cryptocurrency exchange, stated that it will stop processing automatic clearinghouse (ACH) transactions later this month.

Srinivasan's warning has sparked a frenzy in the cryptocurrency industry, with many investors taking it seriously and hurrying to buy and move their holdings. 

This unexpected increase in demand has the potential to propel Bitcoin prices beyond the $29,000 mark, which has proven to be a key resistance point in previous weeks.

The move by Kraken to suspend ACH transactions could not have come at a worse moment, since the bitcoin market has been suffering severe volatility. With the price of Bitcoin and other cryptocurrencies fluctuating so dramatically, investors are growing increasingly leery about retaining their holdings on exchanges.

Kraken will temporarily suspend ACH deposits and withdrawals beginning March 27 as it seeks a new banking partner following the demise of Silvergate Bank.

Srinivasan predicted last week that Bitcoin price prediction will surge to $1 million by June 17 owing to the significant depreciation of the US currency in the coming months.

The global economy, according to Srinivasan, is on the cusp of a massive upheaval — a "hyperbitcoinization" — that might herald the end of the dollar as the world's leading currency. If existing currencies approach a time of fast hyperinflation, the world economy will gravitate to Bitcoin as "digital gold" as the new, preferred money, he argues.

Bitcoin Price Prediction

At the time of writing, the price of Bitcoin is $27,697.39 USD, with a 24-hour trading volume of $31,363,702,328 USD. Bitcoin has fallen by 1.63% in the previous 24 hours. The market capitalization is $535,271,521,651 USD. It has a total quantity of 21,000,000 BTC coins and a circulating supply of 19,325,700 BTC coins.

Bitcoin's daily chart shows a trendline that is forming a camel pattern, which is not a clear bearish signal like the vomiting camel pattern but is still causing some confusion. This pattern suggests a possible upcoming correction or consolidation period, but the direction is uncertain at the moment.

The Relative Strength Index (RSI) is currently at 66, indicating an overbought condition. If bearish pressure increases, the RSI could experience some oscillation, but if the market remains stable, the RSI could go down to the 50 mark.

The trading value is currently above the 50-day average, which is a positive sign for Bitcoin. This indicates that there is a healthy demand for the asset, and buyers are willing to pay a premium price.


bitcoin daily chart

Source: TradingView

The price diverged with the MACD trading into the resistance at 28911 on the 4-hour chart below. This indicates a loss of momentum, and we should expect pullbacks and possibly reversals.

The moving averages have crossed downward, indicating that the short-term trend may be changing. The 38.2% Fibonacci retracement level might be a favourable opportunity for sellers to enter.

Bitcoin Onchain Analysis

Bitcoin on-chain analysis reveals that the MVRV ratio can be a reliable indicator of long-term signals to determine when Bitcoin and the broader cryptocurrency market are overbought or oversold. The highest MVRV ratio ever recorded for Bitcoin was 8.08 on June 4, 2011.

Currently, Bitcoin has sustained an MVRV ratio above 1 for more than 60 days, indicating a period of overbought conditions. The MVRV ratio is calculated by dividing the market capitalization by the realized capitalization, with a ratio above 1 indicating that the market capitalization is higher than the realized capitalization.

There have been four previous periods in Bitcoin's history where the MVRV ratio has broken above 1 and maintained that support level for more than 60 days, similar to the period we are in now. During these previous periods, Bitcoin has experienced both bullish and bearish movements.


BitcoinPrice Prediction


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