Cryptocurrency analysts stated that prominent indicators regarding Bitcoin’s valuation could herald a strong rise in the near term. In this view, a “golden intersection” that will occur soon, especially in the MVRV ratio, draws attention. It has been pointed out that there have been long-term and sharp increases in value in Bitcoin price following these intersections in the past.
Bullish signal from MVRV indicator
The MVRV rate is based on comparing Bitcoin’s market value with its realized (changed hands) value. According to the latest data, this rate has approached the “golden intersection” point with the 200-day moving average. CW8900 from cryptocurrency analysis platform CryptoQuant highlighted that this technical confluence has triggered historically significant price jumps.
After the MVRV rate rose above the 200-day average in the 2022 cycle, Bitcoin rose from $ 16,300 to $ 31,000 with a 90 percent rally. Another crossover in September 2023 led to a 400 percent rally that took the price to its current peak of $126,000. At this point, a new upward momentum is expected in the near future.
“The golden intersection of the BTC MVRV rate and the 200-day average will occur soon. Similar situations have triggered strong increases in the past,” CW8900 evaluated.
At the end of April, the 30-day average of Bitcoin’s MVRV rate exceeded its 90-day average, which was again interpreted positively by analysts. With the recent price surge, Bitcoin rising to $83,000 means short-term investors are taking profits.
Target of 92 thousand dollars in the short-term cost band
With the recent rise in Bitcoin, the average buying cost of short-term investors has increased. The cost band for that group is currently expected to rise up to $92,000. According to analysts, if this band is exceeded, the price may approach the “heat band” and a new upward potential may arise, reaching the $ 104,000 level.
According to Glassnode data, the risk area of short-term investors has been approached. However, it is stated that the price may test higher levels before this area is exceeded. In other words, even if profit realizations occur, technical indicators continue to be positive for the short term.
“The so-called heat band is located at $92,000 and the overbought band is at $104,000. Price movements may become harsher as these ranges are approached,” the assessment came to the fore.
Huge rally claim from experts
According to Cointelegraph, many analysts noted that Bitcoin retested the 200-day moving average at $82,500. A strong upward break of this level could completely end the downward momentum that has been going on for months. Otherwise, it was emphasized that the price could drop to $50,000 with a new sales wave.
Analyst named Shib Spain said that the downward trend on the weekly chart has ended and the MACD indicator is giving positive signals. Accordingly, a structural change has occurred and a strong upward movement may begin in a short time. Another analyst, Mustache, shared that Bitcoin market value and RSI indicator jumped from the multi-year support line on a monthly basis.
“I predicted Bitcoin’s bottom in this cycle, as in 2022,” commented Mustache, pointing to an upcoming big breakout.
Some experts, on the other hand, raised the possibility of a new super rally in Bitcoin in the range of $ 180,000-250,000 this year, with the interest of institutional investors and the strengthening in technical indicators. In short, critical technical indicators and investor behavior have started to support the bullish scenario.
