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With the price of Bitcoin recently surpassing $65,000, many investors believe that the bottom may already be reached. Technical indicators such as the MVRV ratio give a positive buy signal and indicate potential gains of 67%.
A significant portion of BTC supply is still in profit
The latest chain data shows that 88.8% of the total Bitcoin supply is currently in the positive zone. Although this percentage is lower than the highs reached at the beginning of the year, this percentage remains historically high. The last time such a level was seen was on February 7, 2024, when BTC was trading around $44,000.
This significant share of earnings of the holders could create some selling pressure and moderate the upward momentum in the short term. However, many analysts remain convinced that if Bitcoin manages to hold above $65,000, the positive momentum could continue and push the price to new highs.
” If the price sustainably breaks above $75,000, it will likely confirm that the low is behind us. Conversely, a return below $58,000 would mean that the bottom has not yet been reached “, comments merchant Nebraskagooner.
Promising technical signals despite uncertainties
Despite these uncertainties, Bitcoin’s MVRV (market value to realized value) ratio appears to indicate an attractive buying window. This indicator allows you to assess whether the price is overvalued or undervalued compared to its “real value”.
According to analyst Ali Martinez, when this ratio crosses its 90-day moving average, it provides historically excellent buying opportunities with an average gain of 67% since November 2022. This pattern has just resurfaced, indicating that now is a good time to accumulate BTC.
Mr. Martinez also highlights the recent decorrelation between Bitcoin and the Global Liquidity Index. He believes that an increase in liquidity ahead of the US election will be necessary to support the upward momentum. However, with transaction fees rising and address creation falling, mixed signals persist
Although Bitcoin’s technical and on-chain configuration suggests promising growth potential, caution remains in order in the short term. A high level of supply profitability could trigger profit taking. The next few weeks promise to be decisive in confirming a sustained market reversal.
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I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.