Bitcoin (BTC) Price Is Gearing Up For A Bullish Outlook Despite Notable Bearish Performances

After several weeks of notable bearish performances, Bitcoin‘s core metrics are hinting at a bullish outlook for the flagship asset’s price.

Several weeks of notable bearish performances by Bitcoin (BTC) have pushed its core metrics toward a bullish outlook for the flagship asset’s price.

Bitcoin’s price is currently struggling to regain the $90,000 mark. However, its market dynamics hint at a transition into positive territory, signaling growing momentum.

On-chain and investment platform Swissblock has highlighted an impending change in Bitcoin’s current market trends and price trajectory. With the heightened volatility over the past few weeks, the expected shift could be pivotal for BTC to gain momentum and surge.

According to the platform, this move may indicate that confidence among investors and network activity is growing in spite of recent price fluctuations.

According to Swissblock, determining the direction of Bitcoin’s price is already difficult under normal circumstances. When concentrating on short-term volatility, traders usually examine price activity, momentum, and support and resistance levels. However, BTC’s fundamentals become the main focus once volatility reaches a high level.

At present, BTC fundamentals are about to move into the positive quadrant with steady gains in network size and liquidity. Considering the development, the platform noted that BTC is unlikely to enter a bear market, even in the face of manipulation and heightened volatility.

Should this trend successfully move into the bullish quadrant, BTC might regain robust upward momentum, which will set the stage for higher price levels.

Is BTC Becoming Extremely Risky To Invest In?

While fundamentals are about to turn positive, BTC’s risks are at a high level, which has triggered uncertainty about price prospects. The Bitcoin Risk Index, a key metric for determining BTC’s direction, has surged to a 79.44 level amid bearish forces.

It is worth noting that this index is now flashing emergency mode for BTC after remaining calm since October last year. Presently, risk levels are getting close to September levels after surpassing the August peak when BTC corrected to $53,000. This decline was caused by market turbulence from the Yen carry trade.

If the risk index peaks at 100, the development might signal the beginning of a recovery and the bottoming of the ongoing correction. Thus far, Swissblock highlighted the importance of patience as the risk index metric draws closer to 100.

Currently, Bitcoin has briefly rebounded to the $87,600 threshold after a sudden drop to $81,900 on Tuesday, with over 1% daily increase. Despite the slight rebound, investors’ sentiment is still bearish, with BTC’s trading volume dropping by nearly 6% in the past day.