A key Bitcoin ($BTC) price indicator has started flashing a buy signal, suggesting the price of the flagship cryptocurrency could keep on rising in the near future after consolidating around the $43,000 mark as it recovers 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, which is calculated by dividing Market Value by Realized Value, has dropped below its 90-day average. Per the analyst, when this happened over the past year, it signaled a “buy-the-dip opportunity.”
The MVRV index, according to Santiment, 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.” According to Glassnode, a value of over 3.5 has “generally served as a strong signal for late stage bull cycles, and heightened probability of heavy distribution,” while a value under 1 “indicates that a large cross-section of the supply is near break even, or held at a loss.”
The firm added that these “low values have typically provided strong signal of market capitulation and late stage bear accumulations.” The index is known for having helped time previous market bottoms.
The data comes at a time in which 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, the highest figure seen since May 16, 2023.
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 boosted by stimulus checks.
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.
Notably, earlier this month 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.
Featured image via Unsplash.
Read the full article here