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According to CryptoQuant, Bitcoin might be on the verge of a potential price rebound, if judging by the MVRV indicator.
In a recent insight report, CryptoQuant noted that monitoring the Market Value to Realized Value (MVRV) ratio can be a valuable tool for investors, helping them determine if current market conditions align with historical currency trends.
Can MVRV break the downtrend?
— CryptoQuant.com (@cryptoquant_com) July 19, 2024
“The MVRV is currently around 2.1, attempting to break a downtrend. If it can break this downtrend, we could potentially see sharp price increases after a retest, similar to previous cycles.” – By @tugbachain
Link 👇https://t.co/7bLmdk2Kky pic.twitter.com/oFjaGfMPcU
While an MVRV ratio of 3.7 indicates historical highs, a ratio of one or below it suggests lows. Bitcoin's MVRV is currently around 2.1, attempting to break a downtrend. If it can break this downtrend, a potentially sharp price increase after a retest might be anticipated, similar to previous cycles.
At the time of writing, BTC was down 0.84% in the last 24 hours to $64,396.
Critical levels to watch
Bitcoin rose above $66,000 on July 17 before falling below $65,000 and retested this level for most of July 18. According to market analysts, $65,000 might be seen as a “strong resistance.”
In the near term, a break above the $65,000 level is being watched for a continuation of the Bitcoin price rise.
If this occurs, Bitcoin might aim for a shot at the $66,000 level. A break above it might see Bitcoin aim for its current all-time high near $74,000.
In the event of price declines, Bitcoin seems to be establishing support near the $63,000 level.
The support provided by the 200-day SMAs of around $62,700 is close to the zone where approximately 840,920 BTC were previously bought by 1.7 million addresses. Increased demand from this zone might push BTC prices higher in the event of a fall.