The bearish trend persisted for Bitcoin [BTC] as both its daily and weekly charts remained in the red zone. Nonetheless, a recent analysis hinted at a potential trend reversal in the near future. This prompted CryptoCrypto to conduct a thorough investigation into the possibility of a market shift.
Could Bitcoin Hit $120k in Upcoming Months?
Last week, the price of the leading cryptocurrency experienced a 3% decline. The bearish sentiment carried over to the past 24 hours, with Bitcoin trading at $68.4k at the latest market update. Despite the prevailing bearish outlook, a recent analysis by CoinLupin at CryptoQuant suggested a significant price rally on the horizon.
Referencing BTC’s MVRV ratio, the analysis highlighted that the market’s surface value was double its on-chain estimated worth, with an MVRV ratio around 2. By utilizing the 365-day Bollinger Band for MVRV and the 4-year average, the analysis indicated that Bitcoin’s cycle was still on an upward trajectory. Typically, the MVRV peaks in the 3-3.6 range during a cycle peak.
According to the analysis, a surge of 43%–77% is required to maintain the realized value (RV) at its current level. This translates to a target range of $95,000 to $120,000 for Bitcoin’s price.
To gauge the likelihood of BTC’s ascent to $120,000, CryptoCrypto examined Glassnode’s data. The Pi Cycle Top indicator pointed to Bitcoin nearing its potential market bottom of $62.7k, with a projected market top close to $116,000.
Considering both the Pi Cycle Top indicator and the analysis by CryptoQuant, the expectation of Bitcoin kickstarting its journey toward $120,000 in the foreseeable future seemed realistic.
Short-term Outlook for BTC
While the long-term outlook for BTC appeared promising, the present scenario raised uncertainties.
Thus, AMCrypto delved into on-chain data to gain insights into Bitcoin’s immediate future as the world awaited the outcome of the U.S. presidential election. The analysis unveiled that BTC’s binary CDD had turned red, signaling decreased movement among long-term holders compared to the average, indicating their intent to hold. Additionally, its NULP suggested a bearish sentiment among investors, emphasizing the high unrealized profits currently at play.
A glance at BTC’s daily chart revealed that the cryptocurrency was testing resistance at its 20-day Simple Moving Average (SMA) at the time of writing. A successful breakout from this level could trigger a bullish momentum, while a rejection might lead to a retracement back to $65,000.