Bitcoin (BTC) has shown strong upward momentum over the past week. The recovery of its price has allowed BTC to reclaim higher resistance levels, leading to a revival of market optimism.
BTC Price Recovery
At the time of writing, BTC was trading at $63,062, marking a 4.95% increase over the past week. These gains have enabled BTC to record positive gains on monthly charts, recovering from a monthly low of $52,546 by a 3.95% rise.
Market Sentiment and MVRV Momentum
These recent price movements have sparked widespread discussion among analysts. Crypto analyst Ali Martinez has predicted an upcoming bullish run, citing the MVRV momentum. Martinez noted the latest shift of MVRV from negative to bullish territory. He stated that MVRV shifted to negative momentum in late April, during which BTC declined from a high of $67,241 to a local low of $49,577. However, the MVRV is now showing a return to bullish if it manages to close above its 90-day moving average. This suggests that the downtrend is reversing, and the market could shift back to bullish with the potential for further gains.
Indicators Suggesting Bullish Territory
Bitcoin’s NVT ratio has declined from 33.3 to 20.1 over the past week, suggesting that on-chain transaction volume is growing faster than market capitalization. This is a bullish indicator as it implies the network is being used actively and the price is less valued compared to the utility. Additionally, Bitcoin’s supply in loss has declined over the past week from 4.2 million to 2.8 million. This suggests that the BTC price is rising, pushing previous underwater assets into profitability. This is another bullish signal indicating upward momentum. Furthermore, Bitcoin’s Exchange supply ratio has declined over the past week from a high of 0.13128 to 0.1308. This indicates that holders are moving their BTC from exchanges to cold wallets, suggesting holding behavior for the long term rather than selling. Such activity reduces selling pressure, which is usually a bullish sign. Therefore, BTC is increasingly enjoying higher investor favorability. If the current market sentiment holds, BTC will challenge the next resistance level of $64262.
Amid growing market optimism and favorable technical indicators, Bitcoin continues to show steady growth. It will be interesting to see if BTC can overcome the next resistance levels and extend its bullish trend.
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