Bitcoin (BTC) has been on a strong rally over the past week. The price recovery has not only helped BTC break through higher resistance levels but also revived optimism in the market.

In fact, at the time of writing, BTC is trading at $63,062, marking a 4.95% increase over the past week.

These gains on the weekly chart pushed BTC to record positive results on the monthly chart, recovering from the monthly low of $52,546 with a gain of 3.95%.

While undeniable, the recent price movements have sparked widespread discussion among analysts. One of them is popular crypto analyst Ali Martinez, who has predicted an upcoming bull run, citing MVRV momentum.

Market sentiment

In his analysis, Martinez mentioned MVRV's recent move from negative to growth territory.

According to his analysis, MVRV shifted into negative momentum in late April. During that time, BTC fell from a high of $67,241 to a local low of $49,577, before a short-term recovery and then another decline.

Based on this observation, after a long period of negative momentum, MVRV is now showing signs of returning to bullish territory if it can close above the 90-day moving average.

This means that the downtrend is reversing, and the market may return to a bullish state with the potential for further gains.

As an example, the last time it fell below the 90-day MA was mid-2023. After a recovery, the price stabilized before continuing to rise.

So, with the market having taken advantage of the buying opportunity, BTC is well positioned for price growth.

What BTC charts show

As observed by Martinez, the BTC market is showing signs of returning to bullish territory after a long period of decline. Therefore, the current market sentiment could set Bitcoin up for further upside.

For example, Bitcoin's NVT ratio has dropped from 33.3 to 20.1 over the past week, indicating that on-chain transaction volume is growing faster than market capitalization.

This acts as a bullish indicator as it suggests that the network is being actively used and its value is not yet commensurate with its utility. This decline signals investor confidence in the long-term viability of the network.

Additionally, the supply of Bitcoins in a loss has decreased over the past week from 4.2 million to 2.8 million. This decrease suggests that the price of BTC is rising, pushing previously loss-making assets into profit. This is another bullish signal that signals a turnaround.

Finally, the exchange supply ratio of Bitcoin has decreased over the past week from a high of 0.13128 to 0.1308. This suggests that holders are moving their BTC from exchanges to cold wallets.

This movement shows a long-term holding trend rather than a sell-off. Such activity is effective in reducing selling pressure, which usually signals positivity in the market.

So, as observed, BTC is gaining more and more favor from investors. If the current market sentiment holds, BTC will challenge the next resistance level at $64,262.

DYOR! #Write2Win #Write&Earn #Write2Learn #Write2Earn!