Key Bitcoin Price Indicator Suggests Crypto Could Keep Rising
A Key Bitcoin ($BTC) price indicator has started flashing a buy signal. This suggests the price could keep rising. This has happened after consolidating around the $43,000 mark and recovering from a drop that came along with the launch of spot exchange-traded funds in the US.
According to popular cryptocurrency analyst Ali Martinez, Bitcoin’s Market Value to Realized Value (MVRV) index has dropped below its 90-day average. This index signals a “buy-the-dip opportunity.” It is calculated by dividing Market Value by Realized Value.
The MVRV index increases as more people will be “willing to sell as the potential profits increase” and “gives an idea of how much overvalued or undervalued an asset is.”
The firm added that “low values have typically provided strong signal of market capitulation and late stage bear accumulations.” The index has helped time previous market bottoms.
The data comes as Bitcoin miners have been selling their BTC holdings, moving over 4,000 coins valued at around $173 million from their wallets to cryptocurrency exchanges in a single day.
Bitcoin miners are adding selling pressure to the cryptocurrency market at a time in which the price of the flagship cryptocurrency is heading for its fifth month of gains in a row, the longest run since the pandemic-driven rally.
If Bitcoin keeps rising, it will reach its highest streak of monthly gains since its pandemic-era rally between October 2020 and March 2021 before it reaches its peak of nearly $69,000 in November 2021.
Skybridge Capital founder and managing partner Anthony Scaramucci revealed he believes that BTC’s upcoming halving event will be a major catalyst for its growth and pointed to a $170,000 price target per coin.
Hot Take
Bitcoin’s Market Value to Realized Value (MVRV) index flashing a buy signal is an indicator that signals a potential rise in the price of the cryptocurrency in the near future. This is evidenced by the key findings that have been highlighted by cryptocurrency analysts, and the selling pressure added to the market by Bitcoin miners. The upcoming halving event for BTC is also likely to be a major catalyst for its growth.
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