Bitcoin (BTC) Weekly Prediction: Evaluating the 2022 Bullish Run
  • BTC price shows massive rebound signals as the bellwether crypto hovers at the $40K zone.
  • On-chain metrics hint at an enormous bullish picture from a long-term standpoint.
  • Near-to-mid-term cases show a possible leg-up towards the $50K mark.

Bitcoin has its price actions at a level that may lead to a swift surge towards vital levels. Also, on-chain metrics support the possibilities of a buying momentum surge that may catalyze a full-blow upside if BTC overcomes certain obstacles.

BTC Price and Bullish Technicals

BTC’s price lost approximately 17% since 4 April and currently rebounds from the 200 3-day SMA at $39,506. That meant a massive bearish move as Bitcoin fell beneath the bullish cross between the 50-day Simple Moving Average and 100-Day SMA.

BTC formed two higher lows and three higher highs between 22 January and 15 March, revealing an ascending channel setup. Meanwhile, the swing lows breached the 200 3-day Simple Moving Averages while candlestick bodies closed beyond them. Market players can expect a brief downswing with a swift recovery before BTC makes a U-turn.

A rebound from the 200 3-day SMA would likely catalyze a full-blown rally that will see BTC overcoming the 50-day SMA and 100-day SMA and hit the $46,198 yearly open. A massive buying momentum is essential for such a move to manifest. Therefore, BTC can experience challenges overpowering the level. However, some cases would see the leading crypto retesting the 200-day Simple Moving Average at $48,169.

Though technicals suggest a minor uptick for BTC, on-chain metrics suggested a brighter future. Net exchange change and exchanges supply suggest enormous bullishness. The latter tracks BTC on centralized entities and can estimate selling momentum. A surge in this index often welcome sell-offs. Meanwhile, BTC has had this indicator on downtrends since March 2020.

Bitcoin exchange supply plunged towards levels never seen since 6 December 2018 as it hit 1.91 million. That means traders trust BTC price performance. Also, the exchange net change indicator adds credence to the bullish narrative. It tracks the monthly change in BTC on exchange wallets. Exchanges have lost around 100,000 tokens since March this year. Remember, such record outflows have emerged five times only in BTC’s existence. That shows investors betting on enhanced price performance in the long term.

For now, BTC appears on a lucrative level to launch a colossal upsurge, and on-chain indicators support this outlook. Nevertheless, a daily candle closing under $34,752 support will lead to extended drops towards stable support floors. Thus, enthusiasts should watch sell-stops beneath $30K as Bitcoin can plunge lower to search for liquidity before the 2022 bullish rally.

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