As Bitcoin price bottoms out, here’s how you can take advantage of it

ambcrypto.com:

Bitcoin has been a source of disappointment for many in the crypto industry of late. The king of cryptocurrency has put up a rather poor show in terms of price action in the last two months. Well, it’s about time Bitcoin regained its former glory. Admittedly, there aren’t a lot of signs to suggest a major rally from hereon, but a few indications do point towards initial signs of recovery.

BTC/USDT | Source: Tradingview

From a technical standpoint, Bitcoin has recovered somewhat from its lows and breached a crucial level of resistance. And, the 50-day moving average. Even the RSI pointed towards a healthy rise in momentum at the time of writing. However, it is still trading below its 200 day moving average. Thereby, hinting that long-term bullishness hasn’t returned to the market yet.

Therefore, for BTC, a breakout above both the 200 DMA and the second resistance region of $52,000-54,000 is necessary. This, in order to shrug off all the bears holding down the market.

On-chain metrics also seem to suggest positivity for Bitcoin with the NVT ratio sustaining despite Bitcoin’s price recovery in the past few days. This presents a bullish opportunity to buy into the coin at an undervalued situation. And, the coin may give good returns if broader market sentiment revives going forward.

NVT Ratio | Source: Santiment

Along with the NVT Ratio, the adjusted price DAA divergence has also been flashing buy signals all over the place. Thus, prompting good buying opportunities.

Adjusted Price DAA Divergence | Source: Santiment

Along with that Bitcoin’s Puell Multiple indicates an attractive value proposition at the moment too. With the ratio still under one despite the recovery from the local lows. This primarily presents a good risk-to-reward