How Will Bitcoin Move Next Week? It May Not Be Ready to Reach the $30,000 Target!

• While Bitcoin’s price attempts to boost buyer confidence, sellers are becoming increasingly active near resistance levels. As a result, the psychological $30,000 threshold does not appear likely for Bitcoin to reach next week.
• Bitcoin initially continued its ‘Uptober’ trend but couldn’t sustain this momentum due to profit-taking sentiment among long-term holders (LTH) or ‘Hodlers.’
• Long-term holders (LTH) are taking profits after BTC price rises above $28,000. BTC Hodlers’ net position recently hit a 1-month low of 51,845.

What do the current on-chain metrics for Bitcoin tell us? Bitcoin needs to break a critical resistance to reach $30,000 next week!

What Bitcoin’s On-Chain Data Is Saying?

Recently, Bitcoin has been making headlines with its fluctuating price, hovering around $28,000. While Bitcoin’s price attempts to boost buyer confidence, sellers are becoming increasingly active near resistance levels. As a result, the psychological $30,000 threshold does not appear likely for Bitcoin to reach next week. This sentiment is supported by various on-chain metrics, especially an increasing NVT signal.

Bitcoin initially continued its ‘Uptober’ trend but couldn’t sustain this momentum due to profit-taking sentiment among long-term holders (LTH) or ‘Hodlers.’ As a result, Bitcoin’s price trend is showing a decline for the coming week.

Glassnode data highlights a significant increase in Bitcoin’s Network Value to Transaction ratio (NVT signal), which has reached an unprecedented level of 1,779 not seen in the last five years. Despite Bitcoin’s current value being nearly half of the 2022 peak, the network’s volume has dropped so drastically that a $28,000 valuation could push the limits of sustainability.

An increase in Bitcoin’s NVT signal indicates that the network’s valuation is surpassing its transaction value. This could signal either robust growth and investor enthusiasm or a dangerous price bubble approaching its bursting point.

Additionally, long-term holders (LTH) are taking profits after Bitcoin’s price crossed $28,000. BTC Hodlers’ net position has recently reached a one-month low of 51,845. Historically, Hodler Net Position Change has been a reliable measure of Bitcoin market sentiment.

A decrease usually indicates long-term holders selling, which can increase selling pressure on the market and trigger a downtrend. The departure of long-term holders may lead to short-term players gaining the upper hand and other investors rethinking their market strategies, making Bitcoin’s price far from the $30,000 level at the moment.

Bitcoin’s Trend for the Next Week

Bitcoin is attempting to maintain a trend above $28,000, but a significant wick in the candle chart indicates strong selling pressure at this level. Bears attempted to capitalize on the recent drop, but bulls strongly defended the $27,000 level.

An increasing 20-day Exponential Moving Average (EMA) at $27,800 and an RSI above 60 indicate that bulls are currently dominant. Buyers will likely attempt to retest the $28,500 resistance.

Closing above this resistance would confirm a short-term double-bottom pattern targeting $30,000. However, it’s important to note that this may not be possible next week due to strong selling pressure and bearish metrics.

If the price retraces from this resistance and falls below the 20-day EMA, it may drop below $27,100. If the price can’t find buyer demand near this level, Bitcoin’s price could trigger bearish consolidation at around $26,400.