Bitcoin is making headlines again. As markets speculate on what's next, several technical and on-chain indicators could shift the tide. MVRV, network profitability, and trading volumes are all pointing towards a potential rally... with one crucial condition.
Bitcoin analysts agree that a combination of technical and fundamental factors is necessary for BTC to reach new all-time highs. Let’s examine the key signals that could trigger the next phase of the rally.
Source: CryptoQuant
The Market Value to Realized Value (MVRV) ratio, which measures Bitcoin’s market value against its realized value, shows signs of losing momentum. This trend could indicate that the market is entering the late phase of the current bullish cycle. However, the MVRV is still far from the historical overvaluation zone, signaling potential for further upside.
For BTC to break the $112,000 resistance, analysts emphasize the need for a rebound in on-chain transfer volume and spot trading volume. Such a recovery in activity would reflect stronger investor demand and conviction. These are essential to propel the price to new highs.
In recent weeks, Bitcoin’s on-chain transfer volume has seen a drop of about 32%, decreasing from a peak of $76 billion to $52 billion. Meanwhile, spot trading volume is around $7.7 billion, well below the cyclical peaks reached during this bull run.
Source: Glassnode
This divergence highlights a cooling off of speculative intensity in the market. To trigger a new uptrend, analysts believe a strong rebound in investor activity on exchange platforms will be crucial.
As Bitcoin currently hovers between $110,000 and $100,000, analysts emphasize the importance of converting this range into a strong new support. This would require a significant effort from BTC bulls to sustainably break above the $108,000 – $110,000 level.
Some experts predict a temporary return to the $105,000 – $104,000 range to regain momentum before a new attempt to break through $109,000. Closing above this level would pave the way for new all-time highs for Bitcoin.
As Bitcoin continues its quest for new highs, analysts stress the importance of closely monitoring key indicators. These include the MVRV momentum, on-chain activity, and profitability. A recovery in these metrics would signal a new bullish phase.
Source: Glassnode
Bitcoin’s ability to firmly convert the $108,000 – $110,000 resistance into support will also be crucial going forward. With strengthened investor conviction and demand, Bitcoin could finally break through this pivotal level and explore uncharted price territories.
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