Bitcoin Could See a Bullish Trend Reversal Very Shortly: Key On-Chain Analysis
Bitcoin may be primed to see a pivotal bullish bounce as a key on-chain indicator reaches a historical reversal point.
As shared by Glassnode CTO and co-founder Rafael Schultze-Kraft, BTC’s short-term holder MVRV ratio is reaching the historical reversal point of 1.0. The ratio tracks if short-term Bitcoin investors currently think the coin is over or undervalued.
Per Schultze-Kraft, the fact that the ratio is nearing a value of 1.0 suggests Bitcoin may soon bounce:
As can be seen in the chart below, multiple times during Bitcoin’s 2017 rally did the indicator bounce cleanly off the 1.0-1.1 reading, leading to a rally to $20,000 from around $500. The cryptocurrency was also rejected multiple times when the STH-MVRV Ratio hit one from the underside.
This historical accuracy suggests that Bitcoin may have room to move higher as the indicator nears a pivotal historical reversal level.
Chart of BTC's price action since 2010 with a STH-MVRV Ratio analysis by crypto analytics firm Glassnode. Chart shared on Twitter by Rafael Schultze-Kraft, CTO of Glassnode.
Other Fundamentals Favoring Bulls, Analysts Says
Raoul Pal, CEO of Real Vision and a former Goldman Sachs head of hedge fund sales, recently said:
He thinks that macro trends will drive the cryptocurrency well above $100,000 this market cycle.
Pal previously said that the cryptocurrency may be the best-performing asset of the next few years due to macro trends. He even went as far as to say that other assets may be inferior to Bitcoin.
Photo by Reinhart Julian on Unsplash Price tags: xbtusd, btcusd, btcusdt Chart from TradingView.com Crucial On-Chain Trend Suggests Bitcoin Could See a Trend Reversal
Originally from Bitcoinist.com https://ift.tt/3ihCo5W
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