- Bitcoin (BTC) saw a 10.38% appreciation on the monthly charts
- Analysts predict a further rally based on the MVRV and SMA 365 relationship
Bitcoin has shown a significant rebound in price over the last 30 days after a period of extreme volatility. Following a drop from $70,016 to $49k, BTC has made a notable recovery, currently trading at $65,839. This marks a 10.38% increase on the monthly charts and a 4.47% rise in the last 24 hours.
Is Bitcoin’s rally set to continue?
The recent price surge has sparked discussions among analysts, with Cryptoquant’s Burak Kesmeci suggesting a potential long-term rally based on the MVRV metric. The MVRV is currently above the SMA 365, indicating a bullish signal for Bitcoin.
Kesmeci’s analysis of the historical relationship between MVRV and the 365-day moving average suggests that BTC tends to rally when the MVRV surpasses the SMA 365. With the MVRV at 2.04 and above the SMA 365 at 2.02, this signals a strong bullish trend with potential for further gains.
These indicators point towards growing confidence among long-term holders and investors, leading to increased demand for Bitcoin and driving up prices.
What do other metrics reveal?
Bitcoin’s Exchange Supply ratio has been decreasing steadily, reflecting investors’ preference to hold assets in cold wallets rather than on exchanges. This behavior indicates confidence in future price appreciation, signaling a bullish market sentiment.
Furthermore, the fund flow ratio for Bitcoin has been on the rise, indicating increased inflows of funds into BTC. This trend reflects investor confidence and anticipation of future gains, supporting the likelihood of a continued uptrend.
Additionally, the short-term holder SOPR for Bitcoin has been increasing, indicating a strong market with high demand. This suggests that despite short-term holders selling at a profit, the market is able to absorb this selling pressure, supporting the continuation of the uptrend.
In summary, Bitcoin is currently experiencing positive market sentiment and growing investor favorability. If these conditions persist, BTC is expected to test the $68,240 resistance level.
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Original: The dog ran quickly through the park.
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