BTC is showing signs of recovery, sparking investor speculation on whether it's a mere rebound or the start of a genuine bull run. On-chain data and valuation indicators highlight the critical importance of surpassing $117,000 for confirming a sustainable trend reversal.
Since the peak observed on July 4, the selling pressure from dormant wallets held for nearly a decade has significantly weakened. This on-chain signal indicates that the main BTC sellers have stepped back, making room for a potential rebound.
Currently at 2.19, the MVRV ratio (Market Value to Realized Value) sits in a zone historically conducive to Bitcoin rallies. This level signals that BTC is currently undervalued, offering substantial upside potential.
From a technical perspective, Bitcoin faces a major obstacle around $117,000. This level has served as both support and resistance in the past, and breaking through it could trigger Bitcoin’s next rally. It also corresponds to a major POC and the 20-day moving average.
In other words, this level will determine the future of Bitcoin for the entire month of August. Conversely, failure at this stage could trap investors in a prolonged consolidation phase.
As selling pressure eases and valuation signals become favorable, trader positioning is also beginning to turn bullish. This convergence of indicators points to a potential significant rebound for Bitcoin, provided it successfully breaks through the symbolic $117,000 barrier.
Liquidation data suggests a breakthrough to $120,000 in the coming days. The MRC indicates a potential rise above $128,000.
Furthermore, the STH SOPR has fallen to its median zone and indicates a major capitulation of small investors. Additionally, the “STH Indicator” points to three upcoming resistance levels at $117,000, $125,000, and $133,000.
In conclusion, BTC’s recent recovery is encouraging, but investors must remain vigilant. As long as the price hasn’t successfully established itself above $117,000, the bullish scenario remains fragile. This pivotal level represents the next challenge for the bulls, with the possibility of a substantial rally if successful.
How to buy Bitcoin on Bitget ?
Here’s a guide to obtaining Bitcoin before its potential rise to $130,000 in August :
Bitget is a popular platform for trading Bitcoin (BTC) thanks to its major advantages :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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