This analyst relies on on-chain metrics to support a Bitcoin price (BTC/USD) rally

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  • Bitcoin rose to $17,000 on Monday.

  • InvestAnswers thinks BTC is about to accelerate on a real-value basis.

  • The coin is facing resistance at $19,000 and the 50-day EMA.

bitcoin price (BTC/USD) was marginally up on Monday as most cryptocurrencies made a modest recovery. BTC was back at $17,000, even as data from crypto derivatives exchange Deribit showed sentiment had turned in the cryptocurrency’s favor. But as it happens, one popular crypto analyst is forecasting a rally.

InvestAnswers, a popular crypto analyst, says that on-chain signals suggest that BTC is overdue for a rally. The pseudonymous analyst examines bitcoin’s real price, or RP metrics, in making arguments. Typically, RP posts the value of all BTC the token was bought at and then divides it by the number in circulation. InvestAnswers says BTC never stays below RP for long.

The analyst says that BTC has been under RP for 170 days. In 2020, BTC stayed below RP for 8 days, compared to 115 days in 2018. In 2015, it was slightly longer at 240 days and only 110 days in 2011. According to the analyst, the RP of BTC is at $21,000. Using an analogy, he said that the price of bitcoin is about to rise.

Besides RP, InvestAnswers says that increasing weakness in the US Dollar index indicates a possible rally. The index is inversely correlated to risk-on assets, which means that if it goes down, cryptocurrency Go the other way.

BTC price analysis and outlook amid minor correction

BTC/USD Chart by TradingView

BTC is trading above the 20-day EMA. The bulls are winning the battle at $16,000, although the bears remain relentless. The RSI remains below the midpoint, and the bullish momentum looks weak but improving.

The next test for the bulls will be the 50-day MA and the $19,000 resistance.

Should You Buy BTC?

BTC is still largely bearish. However, all signs are buyers looking for the next opportune moment. Meanwhile, BTC is eyeing $19,000 and a recovery above this level could turn more bullish.

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