Bitcoin has seen a significant price surge since Tuesday following the Federal Reserve’s announcement of a 50 bps interest rate cut. This move pushed BTC past the critical $62,000 mark, a psychological level that has become a turning point for investor sentiment. With Bitcoin now testing local supply, market participants are closely watching for potential further growth.
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As the price continues to rally, analysts are pointing to crucial data that indicates a potential change in Bitcoin’s trend after months of bearish price action. Glassnode’s metrics reveal a notable trend change, suggesting that BTC may be entering bullish territory once again. This resurgence is increasingly attracting the attention of retail and institutional investors alike as they assess whether Bitcoin’s recovery will have staying power or if the market will face resistance at higher levels.
With renewed momentum, the next few days will be critical in determining whether Bitcoin can sustain this upward trajectory and fully break out of its previous bearish phase.
Bitcoin signals a bullish comeback
Bitcoin investors have seen sentiment shift dramatically from fear to hope in just a few days. Following the Federal Reserve’s rate cut announcement on Wednesday, Bitcoin surged more than 8%, breaking critical levels and testing local supply. This sudden price action has sparked renewed optimism in the broader crypto market, giving investors hope for a fresh start after months of bearish price movement.
Prominent crypto analyst Ali Martinez shared valuable insights into Xdrawing attention to important data from Glassnode that suggests a significant shift in Bitcoin’s price trend. Specifically, Ali highlights the market value to realized value ratio (MVRV), which tracks the difference between BTC’s market price and its actual value.
The MVRV index, which had been in a downtrend since April, is now rising, signaling that Bitcoin may be regaining strength. Ali notes that MVRV is a critical indicator for assessing momentum, and the current upward trend suggests a potential return to bullish territory.
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The analyst further explains that if MVRV can close above its 90-day moving average, it would confirm a stronger bullish outlook for Bitcoin. Given the aggressive price rally and growing demand reflected in the recent price action, this scenario seems increasingly likely. Investors are now watching closely as Bitcoin’s next moves could mark the beginning of a new bullish phase.
Technical levels to watch
Bitcoin (BTC) is trading at $63,024 after days of consistent “only up” price action since hitting local lows. The price recently broke above the 200 daily exponential moving average (EMA) at $59,350 and is now testing the critical 200 daily moving average (MA) at $63,954.
This 200 daily MA is a key long-term indicator, signaling overall market strength. If Bitcoin manages to reclaim this level as support, it would likely trigger a significant price rally, reinforcing the bullish outlook.
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For bulls to maintain momentum, the next target would be around this critical level, with a potential push to $65,000, a price last tested in late August. However, if BTC fails to hold above $60,000 in the coming days, investors could see a pullback to lower levels in demand. The ability to remain above key support zones will determine the next phase of price action.
Featured image of Dall-E, chart from TradingView