A minimum price of USD 39,000 suggests that there will not be a significant drop in the short term. A bullish candlestick appears to indicate medium-term bullish momentum that would challenge resistance at USD 58,000.

After the latest sharp market crash, the price of Bitcoin is starting to show signs of strength. Some metrics collect chain data that predict a positive short-term future.

The pioneering cryptocurrency is trading at around USD 48,440 and has grown by 1.4% in the last 24 hours, according to ConGecko.

Two on-chain indicators and the price action indicate why the first cryptocurrency on the market should start to rise very soon.

SOPR Indicates that Bitcoin is Leaving Weak Hands

SOPR (or Spent Output Profit Ratio) is a popular indicator due to the accuracy of the forecasts based on its reading. This tool tracks overall market gains and losses, analyzing data from the Bitcoin blockchain.

Analyst Gaah shows in a review that the SOPR STH indicator has fallen below 1.00. That drop indicates that short-term holders are selling at a loss. Analysts usually interpret that situation as the exit of weak hands.

Meanwhile, headlines about the price of Bitcoin in the long term are holding firm, suggesting that the bullish cycle continues.

Bitcoin Illiquid Offer Data Guarantees a Bullish Prediction

A model combining the stock-to-flow pattern with illiquid supply data indicates that the current minimum price is USD 39,000. That leads to the belief that there is no reason to predict a significant short-term drop.

Young analyst Will Clemente says that this is a price floor based on the scarcity of Bitcoin. That practically guarantees a very bullish prediction, as reserves on exchanges and a limited supply of the cryptocurrency put pressure on the price.

The Current Price Action Indicates Where It Will Move in the Future

Lastly, price action can say a lot about where the first cryptocurrency can move in the future. The latest weekly chart shows an excellent outlook, in which the decline seems to have hit bottom near USD 43,000.

A bullish weekly candlestick seems to be signaling the start of new momentum in the medium term. That could easily challenge the price resistance at the USD 58,000 level.

In addition, it is also possible to see that the long-term trend has resumed, leading to think that new all-time highs are not far-fetched.

Metrics Indicate that the Price of Bitcoin Will Continue Rising

The above metrics point to the price of Bitcoin going in only an upward direction. For that reason, it is unlikely that there will be massive sales at this time as the value will continue to rise.

The pioneering cryptocurrency has shown since its inception that it is capable of recovering from large drops. Several analysts have even predicted that it could reach USD 1,000,000 by the end of 2021 or the beginning of 2022.

It is only a matter of time before seeing the price of Bitcoin hit another all-time high again. The data from metrics, the price action, and predictions by renowned analysts are clear signs of that.

By Alexander Salazar

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