Bitcoin [BTC] has witnessed a significant recovery in its price over the past month, following two months of high volatility. After reaching a peak of $70,016 in July, BTC experienced a notable decline, dropping to a low of $49,000.
However, following the recent Fed rate cuts, Bitcoin has demonstrated significant gains. Currently, Bitcoin is trading at $65,839, indicating a 10.38% increase on the monthly charts, with a further 4.47% uptick in the last 24 hours.
Is Bitcoin set to sustain its upward momentum?
The recent price surge has captured the attention of the cryptocurrency community and analysts alike. One such analyst, Burak Kesmeci from Cryptoquant, suggested that a prolonged bullish trend may continue, citing the MVRV metric.
According to Kesmeci, the Bitcoin MVRV metric has once again signaled a bullish trend, with the MVRV surpassing its SMA 365 average. By examining the historical relationship between the MVRV and the 365-day moving average, the analyst concluded that Bitcoin typically experiences a rally after the MVRV exceeds the SMA 365.
Currently, the MVRV stands at 2.04, above the SMA 365 of 2.02, indicating a strong bullish signal and hinting that the bulls are in control of the market sentiment.
With the MVRV positioned above the SMA 365, signaling a strengthening long-term trend and Bitcoin’s current market value surpassing its average realized value over the last year, there is growing confidence among long-term holders and investors, potentially driving up demand and prices.
Insights from Market Data
While Kesmeci’s analysis presents an optimistic view, it’s essential to consider other fundamental indicators.
Bitcoin’s Exchange Supply ratio has shown a consistent decline in the past week, dropping from 0.1311 to 0.1304. This diminishing ratio suggests investors are holding onto their assets in cold wallets rather than on exchanges, reflecting confidence in future price appreciation.
Moreover, Bitcoin’s fund flow ratio has been on the rise, increasing from 0.04 to 0.086 over the last seven days. This uptrend signifies a greater influx of funds into Bitcoin, indicating growing investor confidence and anticipation of future gains.
Furthermore, Bitcoin’s Short-term holder SOPR has seen an upward trajectory in the recent week, indicating a strong market sentiment. Despite short-term holders selling for profit, the market demand remains robust enough to absorb selling pressure without causing a downturn, suggesting a continuation of the uptrend.
In conclusion, Bitcoin is currently experiencing positive market sentiment and increased investor optimism. If these conditions persist, Bitcoin is likely to challenge the $68,240 resistance level in the near future.