Bitcoin price continues to show short-term bearish sentiment but indicators point to a potential rebound. Let's explore the current situation and expected trends.
Current Bitcoin Price Situation
Bitcoin prices have fallen below $95k amid declining bullish momentum since mid-November. The upcoming pro-crypto stance of President-elect Donald Trump could prompt a 'sell-the-news' event amid heightened hype.
Midterm Market Expectations for Bitcoin
The Market Value to Realized Value (MVRV) indicator suggests a potential major rebound ahead. Bitcoin's current MVRV ratio exceeds the 1-year Moving Average (MA) of 2.18, and historically, Bitcoin reaches extreme euphoria at a 3.2 MVRV ratio, correlating to about $132k.
Overall Market Picture
Despite reduced returns due to increasing mainstream adoption, Bitcoin's rising confidence is expected to draw more capital from the Gold market and traditional finance. Furthermore, more countries may follow El Salvador’s example, especially if the Trump administration in the U.S. implements a strategic Bitcoin reserve.
While Bitcoin faces short-term challenges, its long-term outlook remains optimistic with increasing institutional demand and countries' interest in cryptocurrencies.
