Key points:
Bitcoin has gained 10.38% in value over the past month, and analysts predict it could rise further. Cryptoquant analyst Burak Kesmeci said that based on the MVRV indicator, Bitcoin’s long-term upward trend is expected to continue.
After two months of intense volatility, Bitcoin [BTC] has posted significant price gains over the past 30 days. After reaching a high of $70,016 in July, BTC fell sharply, even hitting local lows of $49,000. However, BTC has made significant gains on the back of the Federal Reserve’s interest rate cut a week ago. At the time of writing, Bitcoin is trading at $65,839, up 10.38% on the monthly chart and up 4.47% in the past 24 hours.
Predictions for continued growth:
The recent rally has sparked a lot of interest in the cryptocurrency community, with speculation that a long-term sustained rally is possible. Cryptoquant analyst Burak Kesmeci is one of those who predicts that Bitcoin's price will continue to rise, and he based his prediction on the MVRV indicator. Kesmeci believes that Bitcoin's MVRV indicator is currently showing a bullish signal, with MVRV priced above its SMA365. Historical analysis of the relationship between MVRV and the 365-day moving average shows that BTC usually rebounds after MVRV breaks above SMA365. At the time of reporting, MVRV is 2.04, which is above its SMA365 of 2.02. Kesmeci interprets this as a strong bullish signal, meaning that the market situation is favorable for bullishness.
Other indicators:
While Kesmeci’s indicators offer a positive outlook, other fundamentals can also provide some insights. For example, Bitcoin’s exchange supply ratio has continued to decline over the past week, indicating that investors are storing assets in cold wallets rather than exchanges, which is a bullish sign. Additionally, Bitcoin’s fund flow ratio has been increasing over the past week, indicating more funds flowing into BTC, reflecting growing investor confidence. Finally, Bitcoin’s short-term holders SOPR has also been rising over the past week. In an uptrend, a rising short-term SOPR indicates a strong market, meaning the uptrend is likely to continue.
In summary, BTC’s market sentiment is positive and investors’ favorability is increasing. If these market conditions continue, BTC may try to break through the $68,240 resistance level.
The article is for reference only and does not constitute investment advice.
