BTC Price Shows 60k ‘Potential’ As MVRV Metric Copies Bitcoin Bull Cycles
Bitcoin (BTC) is primed for a “boom” as it conveys familiar bull market signals from the past, according to the latest research.
In a January 30th post on X, popular social media analyst Ali Tariq repeated himself on the popular BTC price indicator.
MVRV indicates a possible “extreme deviation”.
Bitcoin may be struggling on lower timeframes following the release of a spot exchange-traded fund (ETF), but the picture is bullish.
For Ali, one of the many encouraging signs comes from the Market Value to Virtual Value (MVRV) measure — a popular tool used by on-chain analytics firm Glassnode to measure what Bitcoin's “fair value” calls.
When MVRV deviates significantly from the mean, it coincides with bull market tops and bear market bottoms.
Currently, the BTC/USD MVRV is focusing on the average level, crossing the top and bottom in both 2016 and 2020.
“In past bull markets, Bitcoin bounced back strongly after touching the average MVRV price band,” Ali wrote in accompanying comments.
“We are seeing a similar pattern now. A recent breakout from the average MVRV at $40,500 in $BTC to the 1.0 standard deviation line at $60,000 is likely!”
On January 31st, Cointelegraph reported a drop in another metric that measures stable coin supply compared to BTC supply. The Stable Coin Supply Ratio, or SSR, is now below 80% of the all-time high seen three months ago – raising the possibility of a BTC price rally.
Bitcoin Ichimoku Resistance Mountains
Elsewhere, Ichimoku Cloud analysis also keeps the overall Bitcoin bull market narrative alive.
RELATED: Bitcoin traders dismiss BTC price at 2-week high amid fresh liquidity squeeze
After retreating from the $49,000 two-year high earlier in January, Ichimoku's previously bullish weekly chart setup took some punishment.
The price fell below the Tenkan-Sen reversal line and this served as resistance, the price could not go higher, data from Cointelegraph Markets Pro and TradingView confirm.
Analyzing the medium-term high potential based on Ichimoku, the well-known cryptocurrency trader warned that the January high may remain.
“People say there will be no corrections in ETFs here, but that's not true,” he said in a January 13 post on X subscribers.
Cryptokon concluded, “This time is no different unless the price is clearly proven, and it hasn't been.
With a touch of 49k, #Bitcoin has reached a critical point on the weekly Ichimoku
Red cloud top.
This has shown moderate-to-high accuracy in previous cycles, but in the $49,100 event high, it was accurate.
The peak came on… pic.twitter.com/bC0xMNchMU
— CryptoCon (@CryptoCon_) January 13, 2024
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
