TronWeekly

Crypto World News

You are here: Home / Archives for BTC Price Analysis

BTC Price Analysis

Bitcoin’s Next Big Move: Will Optimism Lead to a New Rally or Market Crash?

by

  • Crypto Quant’s analysis reveals Bitcoin’s market sentiment is entering the “Optimism Stage,” indicating potential growth.
  • Historical patterns show Bitcoin rallies during the Optimism Stage, but sharp corrections follow in the Euphoria Stage.
  • March 2025 sees Bitcoin in the Optimism Stage, sparking interest in potential growth or imminent market volatility.

Analytical platform Crypto Quant has shared a significant change in the Bitcoin market sentiment. The Fear & Greed Index involves the use of Simple Moving Average 30 (SMA 30) to show the sentiments of investors in the market. This index is based on the concept that is used in the ‘Psychology of a Market Cycle’ that focuses on distinct phases of investors.

In the past, when Bitcoin index entered the ‘Optimism Stage’, a new rally occurs. This phase is characterized by high confidence among investors, which in turn leads to the buying frenzy. This stage usually precedes an upward trend in Bitcoin prices especially to the previous support level or even beyond. During this phase, the Bitcoin prices are generally observed to increase significantly in the market.

Potential Bitcoin Market Volatility

However there are concerns that may arise from optimism and they include; In the “Euphoria Stage,” the market becomes overly optimistic when Bitcoin shifts to this new stage. However, investors begin to expect continuing high growth rates in the shares and the prices can go too high. Finally, this stage is succeeded by sharp corrections due to the fact that the market turns chaotic at this point.

In March 2025, BTC has come to the stage of Optimism, which became interesting for the analysts and investors. This trend needs to be watched as historical trends indicate that the market can bounce back at any time soon. The long term price changes demonstrate a positive outlook, however, short-term movements are volatile and can potentially lead to bearish turn.

Whether this phenomenon will repeat itself in the future. Bitcoin like before may go through another bullish run or the market could transform into something different. The next few weeks are critical for future trends in the market to be either established or unestablished depending on which side you are on. As of press time, BTC is trading at $91,182, showing a 2.69% increase over the past day.

AD 4nXfB RlLmYThX D55kcv6hBVn ddieUqNZW0loKBwJZmwGuJHAv0M5CrLAJSf1cM 54xiwK0SPAnjLSn3I9gL8BiKmLRLCTU1LyT4Xh Fs8OkHQQohnmcvI2I SD8K1Re0WCf8qzw?key=ADsk cu4 y9N7l gVmTuNet5

Source: TradingView

Optimism Stage Implications

The implication of the Optimism Stage is that there are both advantages and disadvantages associated with it as well. If investors are able to identify some aspects that suggest that the market has entered in the Euphoria Stage then they should be able to make sound investment decisions. 

In that case, a correction might be made soon after, in order to reestablish some balance. On the other hand, if the Optimism Stage continues, it may lead to growth of the BTC. In the upcoming weeks, the general trend will determine whether BTC is ready to start its next surge. 

Bitcoin (BTC) Struggles at Key Levels: Is a Breakout Possible?

by

  • Bitcoin faces strong selling pressure as Coinbase Premium turns negative, signaling increased spot market sell-offs.
  • Analysts suggest Bitcoin needs a positive Coinbase Premium to regain strength and trigger renewed buying demand.
  • Historical data shows Bitcoin’s 15-20% drawdowns often create prime accumulation zones during bull markets.

Bitcoin has faced selling pressure in the last few days, thus shifting to a weaker position in the market. In the latest X post, Daan Crypto Trades pointed out that the Coinbase Premium of BTC has gone to the negative territory, signaling intense spot market sell pressure. This correlates with the trend in the outflows of the ETF and bearish prices that have forced the scenario where Bitcoin cannot hold on to stability.  

Bitcoin Potential Price Recovery

The Coinbase Premium currently measures the premium that Bitcoin has on Coinbase relative to other exchanges. When positive, it signifies the intent of buyers to buy mostly from the United States investor due to confidence in the market. Nevertheless, a negative premium represents strong selling pressure in the spot market and forces the prices down. This situation has only heightened the concerns of the traders, bearing in mind that the Bitcoin was already in the process of a downward spiral.  

Analysts have suggested that for the BTC to make a sharp to the upside, the Coinbase Premium should turn positive again. Any signs of positive territory again would suggest that there is increasing demand and increasing buying. The premium retreats to the down bend after the price tried to move upwards in the last move. Whether this will be the case now that this shift has occurred or if selling pressure will persist remains unknown.  

Key Accumulation Patterns

The analytical platform CryptoQuant pointed out that BTC has also demonstrated a historical accumulation formation. In a recent X post, the platform pointed out that every time the price dips to the range of 15-20% BTC is in Shopping Area 1 or 2. In the past, these zones have always been good buying grounds during phases of a bull market. 

This accumulation strategy is based on two criteria. First, these zones expressed rather high and distinct buy signal points in the past. Secondly, price reduction usually leads to over-reaction by investors and end up giving long-term investors opportunities to invest at a lower price than they usually would have paid for. As of writing, BTC is trading at $84,511 which is a 3.11% increase within the last day.

AD 4nXextHTYE8zOC mMNwbQouw LOspmyYXREpXgwPZq

Source: TradingView

Bitcoin has capabilities akin to a battleground due to the anticipation of development regarding a buying side. This implies that the market remains under pressure with more ETFs being redeemed as well as spot sales, thus exerting further pressure on the prices. If there is persistency of these values at historically sensitive points, a reversal may be within the realm of possibility. However, the subsequent decline in demand should be supported by an upward trend in the market to ensure stable growth in the short-term.

Is Bitcoin Heading for a Major Reversal? Key Levels to Watch

by

  • Bitcoin shows resilience after a volatile period, stabilizing briefly and fueling hope for a potential market recovery.
  • Holding above $93,257 support, Bitcoin signals weakening bearish pressure, with bulls attempting to regain control.
  • Breaking above $100,000 resistance could confirm a bullish reversal, while failure may lead to intensified selling pressure.

Bitcoin is exhibiting resilience as a market after a volatile period recently and is proving to be a force of stability. After reaching the line of $100,000, the price has declined and briefly stabilized at a lower level. This has given hope to the traders and investors as everyone awaits a turn in the market fortunes that has been on a downwards trend. As of press time, BTC is trading at $95,836, showing a 0.82% decline over the past day.

AD 4nXeb0tMYUm TS47Rl4PqTKlYcYtk1j3Px4dpod yYhAf4wgoKq72IfvaYBgZhiMiEm Vi5JQFtSGv1UmYJo3C1h3pkfJ2XZFyiqV uDoqFwAbOR 9JGN0du23B CM8VGzVWkE8bCvQ?key=ng22DQTh4qTv XCXImvYniKn
Source: TradingView

Bitcoin has also been known in the past to recover after volatile cycles and the same will be expected in this case. The recent movements predict that Bitcoin will probably enter another bull run up soon. Traders remain guarded as it remains to be seen whether the bulls will be able to maintain the price above the major resistance levels in the upcoming trading sessions.

Bitcoin’s Resilient Support Level

Bitcoin stands a important superior to the key assist level of $93,257. This is a positive sign that leaves us some indications that bearish pressure may be relenting Although these are clear signs of bearish pressure the sign below is actually positive, Their has also been a rise in the buying activity at these lower levels, as the bulls seem to be trying to take control of the market.

AD 4nXc3HyG VM W3v3lX u7HwUfyPKDQmNXZ6Ga2DBYM8onCFVSdl7DwoXjKFYcyG4mx3EznWal5gWw2eO2PZj2rOqjz5jLaZJPut3mflmwrAENx52ZyVd 5WZCh9vddItCVPeKfAbA?key=ng22DQTh4qTv XCXImvYniKn
Source: TradingView

If the Bitcoin price manages to go above $100,000, it will be considered a sign of a likely reversal to the upside. This would be a key step and may again push the prices even higher. If price manages to break above this resistance, it’s very probable that more towards higher peaks preceding are before us in the next weeks.

Despite holding high market value, there remain volatile risks that come with embracing bitcoins. This support level can be broken down to $93,257 and failure to hold above this level then may lead to more selling pressure which in turn may push the price below this level. It could actually fuel negative sentiments that in turn results into a bear trap and more downs.

Bitcoin’s Technical Uncertainty

Daan Crypto Trades shared his point of view on the current market situation. It also said that due to a closure on Friday that has made many of the positions lie within this boundary, Open Interest has significantly gone down within this price range. Nevertheless, Bitcoin is trading within this range at the moment, something that some analysts regard as a consolidation, though a short-term one.

The technical structure of Bitcoin in the market is rather ambiguous. Although specific price-level support above $93,257 has been maintained, there is a possibility that an extra volatile phase may be experienced. However, if this level is breached on the downside, it will reverse lower and extend the new found bearishness similar to what was seen in the market just a few days ago.

This is especially the case as the cryptocurrency continues to trade sideways with the bulls’ focus now being to break the $100k mark. Such a breakout will signal a bullish pattern and will lead to even higher prices for Bitcoin. However, if the resistance levels remain steadfast, and the selling pressure continues to build up, the price may once again be pressured downwards making it tough for the cryptocurrency to scale the chart again.

The outlook of Bitcoin is somewhat unclear, however, the signs of its recovery can still be seen. The following several days shall define whether the cryptocurrency will continue its upward trend and reach the $100,000 mark. Currently, the trades continue to remain cautious, and are keeping an eye on the price, to determine the behavior of BTC around this region, which represents a crucial SR level.

Bitcoin’s Key Moment: Will $97,567 Support Hold or Break?

by

  • Bitcoin is testing key support at $97,567; breaking this level could signal a deeper decline or further upside potential.
  • A new high for Bitcoin could complete a five-wave pattern, signaling a bullish outlook and potentially driving more market interest.
  • Bitcoin’s price is caught between bullish and bearish forces, with critical support levels determining its next significant move.

The price of Bitcoin is at a psychological level that could define further movements in the cryptocurrency. Experts are focused on the cryptocurrency due to the upcoming test of a particular level. Indeed if it breaks up and forms one more high it will form a five waves pattern thus providing more direction of the price. This pattern is expected to be completed by those who observe the prices of BTC in the market.

Bitcoin’s Five-Wave Pattern

In an X Post on Tuesday, More Crypto Online stated that for this five wave structure for Bitcoin to be complete, ,there is need to rise to a new high, thus affirming development of wave 5. If this occurs, wave 2 should have a higher low and thus a bright future awaits this digital asset in the short-term. This can be understood as a positive signal that BTC may gradually gain new spectators who will push the price further up.

However, it is unclear if Bitcoin is going to be able to hold the $97,567 support level, which is currently viewed as being a level of critical relevance. This price level may be key in determining the direction Bitcoin will take to if it cannot hold above this level. Therefore, the next support level is at $93,628. A drop below this point would make it little less evident that wave 2 might already be underway. Any move below these levels would signal that the appreciation of Bitcoin’s price is decelerating or even reversing.

Bullish Vs Bearish Outlook

Despite such the indecision, some of the market participants are bullish anticipating that the BTC will maintain its support and move up further while others believe the range low will be broken and the price will drop deeper. Currently, the $97,567 level has not been overcome yet which means that BTC can achieve more increase. But any decline process below this level might lead further declines and cause traders to reconsider their current positions. As of writing, BTC is trading at $99,417, showing a 4.77% increase over the past day.

AD 4nXdH8f qWpjZhoM2FMhYtXTqsd 5svZqsRu00VmM3ZTTn8EYeg9bJVZ74mrZr cbq1OF2tx8xiZqrTbHxZghcRZbPrD0im7rdHne qynEUu bJqygOkdewJj7 nt AaPq us U1LiA?key=8YkwYVzvHigFIiCB6o2kQCsD

Source: TradingView

Bitcoin came critical supports that may determine the future volatility In the near few days because it tests these levels. The current cryptocurrency instrument has undergone five wave movement which implies that the next movement may shed more light on the ability of BTC to continue its upward trend or plunge more deeper into a correction.

Bitcoin (BTC) Dominance Surges Is This the End for Altcoins: Report

by

  • Bitcoin dominance continues to rise, defying expert predictions and putting intense pressure on the altcoin market.
  • If BTC dominance hits 70-73%, altcoins like ETH, XRP, and SOL could suffer massive losses, dropping between 50% and 85%.
  • A bearish divergence on BTC’s weekly chart hints at a potential altseason, but uncertainty keeps investors on edge.

The dominance of the Bitcoin in the crypto marked has gone high and it has created a shock even for the experts. In this case, it might take some time before people can start concerning themselves with new coins since BTC continues to dominate the market as many expected it to begin sinking after some time.  

In a recent X post, Egrag presented his point of view on X and revealed two potential outcomes of Bitcoin domination. Both options paint a completely different picture of the future developments of altcoins with one offering a continuation of the negative trend, and the other hinting at a possible relief rally.  

Bitcoin Liquidity Surge

In the first scenario, there will be a concentration of most of the market liquidity in bitcoins, thereby reaching the range of 70-73%. Consequently, altcoins can remain under pressure; some of them are as low as their 2022 bear market bottoms. Mid to large cap coins such as Ethereum, Ripple, Solana, Hedera, Stellar, Polkadot, Binance Coin Cardano and Tron are most in danger given the situation. Some of these coins could further decline in value between 50% and 85%, thereby leading to heavy losses for investors.  

This would be a worst case scenario which would compel the trader to reconsider his strategies. If the Bitcoin’s dominance index keeps going up, it will be difficult for the altcoin market to gain stability in the short run.  

Potential Market Reversal

The second case scenario is still rather brighter and even speaks about the possibility of the occurrence of changes at least in some significant factors affecting the market. Egrag understanding brought a note to light that BTC is forming a bearish divergence on the weekly chart and this is evidence of an alting hen. The technical analysis reveals that Bitcoin dominance has been recording higher high while the Relative Strength Index (RSI) records lower high. This signals that a bearish market may be in the making in the near future.  

If this continues to happen, Bitcoin may be able to rise higher for price but at the same time decreasing its dominance so that capital can participate in altcoins. This scenario could trigger the ‘Altseason’, a period of time where all other cryptocurrencies benefit and surpass the performance of BTC. Some investors expect such a change to happen but the level of risk is still up in the air.  

Bitcoin Hits $79K Amid Whale Activity, Setting Sights On $100K Target

by

  • Bitcoin’s rally crosses $79K, setting records with whale interest and post-election optimism.
  • Large CME gap hints at pullback, but bullish patterns project Bitcoin toward $120K targets.
  • Rising whale accumulation and strong retail demand point to an extended bull market cycle.

Bitcoin is undergoing a massive price rally at the moment, it has crossed major resistance at $79,000 and set a new record. Crypto Rover, in a recent YouTube video, ascribes this trend to the presence of new whales, technological advancement within the system, and positive sentiments during the post-U.S. elections periods. This latest rally has drawn in institutional and retail sentiments which have brought hope about Bitcoin entering a sound bull market cycle.

This increase in price has led to a rather large disparity with Bitcoin’s CME close price hence the title CME gap. Bitcoin ended the week at approximately $76,500 on CME and is now trading about $3000 higher. 

AD 4nXee8Nx74D9dtYrK80JVIySageqBauuyq7Gk08IWDpPviue9TORVCwo2g0QHkaO1F0eFhar8taJB1PNKAC87SCDZJFC uoAdC6DS9m 4ZDkx4CLEOTatCPphuO Q9RxmuTDBHslUZw?key=RRfAOfaI9SDlJ znqYS rJ1B

Source: Chart by CryptoRover

According to history, BTC continues to ‘fill’ these gaps by moving back to the CME closing price and, thus, gives a brief pullback. The spread between the bid-ask prices of Facebook might be possibly decreasing from here; however, analysts do not see a retreat in this upward trajectory because of concrete market reasons.

Bitcoin’s Bull Flag Breakout

Bitcoin has had a positive breakout that has formed a solid higher high technical structure for further increases. One of these patterns is the bull flag and this pattern is mostly likely to result in a breakout with an estimated price target of $120,000. 

AD 4nXc4nww QfDGScBHZo6F3nJtXpf0PK9muOkTOD8FmWidBdYfgWsLmfK73dUNFIkGDw0Fe25w1ZivLG8Au8yjenBc5PcBsWRn8YHbSakMJDPwYmVzo0RrZYSsGjTIourvOWsjSGJm?key=RRfAOfaI9SDlJ znqYS rJ1B

Source: Chart by CryptoRover

Besides, the behavior of BTC’s price is forming a “cup and handle” pattern, which can be considered as a sign to continue the movement upwards. Such patterns suggest a bullish configuration that has reproduced similar patterns of previous cycles and enhances the possibility of Bitcoin reaching or even crossing the $100,000 level.

Lookonchain is a data analysis platform that pointed to newly created wallets as the reason for these more significant inflows into BTC. From November 6 up to the present, 32 new wallets have withdrawn 5,364 BTC which is equivalent to 425 million dollars from Binance.

This accumulation, together with other factors, also shows that large investors are also more interested, and this also strengthens the trend. Even more impressively, this price boost happened at the weekend when there are no direct ETF movements, meaning that retail and private investors are primarily behind the price increase.

Path To $100K Gains

Bitcoin’s rise also falls in step with bull markets, which historically occurred several months after halving or following the US elections. This suggests that roughly 158 days after halving, Bitcoin is ready to sustain an extended urge in an upward direction. 

However, positive could be considered the generally prevailing market sentiment, although certain caution is advised by potential retracements of the CME gap. With broad institution and growing retail interest and aided by the technical analyses with the oversold condition, BTC seems to be on its way to $100k.

As Bitcoin progresses to price discovery, market players are bullish about further advancement. For BTC, the following targets appear closer than ever with critical resistance levels pounded, and strong whale activity driving the trend.

Bitcoin Set For Surge: High ETF Inflows And Technical Patterns Signal Growth

by

  • Crypto Rover predicts a Bitcoin rally, citing historical patterns, technical analysis, and strong ETF fund inflows.
  • BTC’s recent breakout past $67,000 signals strengthening support, with $73,000 as the next key level for bulls.
  • Institutional interest surges as post-election capital flows into Bitcoin ETFs, reinforcing confidence in crypto.

Crypto Rover predicted that the market capitalization of Bitcoin would rise as suggested by historical and technical analysis. In his recent YouTube video, the analyst provided technical analysis, ETF fund flows, and macroeconomic indicators that indicate Bitcoin is poised to challenge the higher price band. He cites historical patterns and coin’s recent behavior as a sign that the cryptocurrency’s next surge might already be in progress.

An important aspect of the analysis is the recent technical performance of Bitcoin. Yesterday, BTC finally got out of range, making a symmetrical triangle that spiked to $67,400. This steep rise indicates a 10% rise in a short while, meaning there is still strong support at $67000 which could be a springboard for further price advances. The price trend shown by present price charts indicates a rising pattern and BTC is currently challenging previous barriers, a clear indication of strengthening support. 

AD 4nXegLnBY6Q8jBMtsjocw436 zyyldvFENdaPqae8CXq6iitVgxfLFMdQ1ulGKDFczwulpn440of7xGlAxF8TMLNy3fFW0xp7kXQO3fshZu4hquspIiHWWBje2db29QcFldnQZ z0?key= GqqRs8v3GoI2roG8QInvGC

Source: Chart by CryptoRover

Bitcoin’s Bullish Pattern

This is particularly the case on a larger four-hour chart, where the token is creating a broadening wedge pattern and might be due for another price rise. If Bitcoin were to experience a minor correction, the next major support level would be at $73,000 which supports the bulls. ”The chart is extremely bullish,” he said, noting that this pattern is usually followed by a bullish run.

In addition, there was a capital flow into Bitcoin ETFs after the U.S. election. The market data indicates that more than $600 million were invested into Bitcoin ETFs, and the buying was done by a number of issuers. In a positive development, BlackRock which is known for being a big buyer, was a big seller thus changing the dynamics. The renewed institutional interest, in the ETF market demonstrates that BTC has a strong vote of confidence as a highly valued asset.

U.S. Election Boosts BTC

In the previous cycles, the U.S. elections have had a positive impact on the price of cryptocurrency. BTC surged after the 2016 election, and similar expectations are being made for this year’s election. At the time of writing, BTC is at $75,174, with a 2.02% surge in the past 24 hours. Bitcoin is currently in a “price discovery phase” and has hit new all-time price records.

Since Bitcoin is the largest cryptocurrency, many believe that other digital assets such as Ethereum will also receive a boost from a related rally. As the crypto market sentiment improves, market observers look forward to an “altcoin season”. The technical landscape, institutional setup, and macroeconomic environment look supportive for BTC and the entire cryptocurrency market in the next few months.

Bitcoin Price At Critical Support: Potential Pullback And $73,500 Target Ahead

by

  • Bitcoin is at a critical juncture, with traders eyeing key support levels for signs of a potential price shift soon.
  • Analysts suggest a pullback to $60,000 could slow BTC’s climb toward $73,500, but growth may resume afterward.
  • If Bitcoin drops to $53,100, it could signal a longer consolidation period before the next upward trend takes place.

Bitcoin price is at a crossroads at the moment, as traders are closely monitoring the actions of BTC near crucial support levels. Market indicators reviewed recently point to signs that the crypto may be going through a change, with possible large price movements predicted in the next few days.

In a recent X post, More Crypto Online pointed out that Bitcoin has not yet displayed any considerable bullish response at a significant support level. This lack of upward movement has led to questions as to whether there could be a pull back which will affect the future rise of BTC in the short term.

Bitcoin Price Movements

The important area of interest is the $60,000 level since a temporary pullback to this level may slow down the BTC/USD pair’s ascent toward the target of $73,500. The price may even go below the current micro support level before continuing the uptrend. This appears to be a corrective scenario, that any downturn might be temporary with growth resuming shortly after.

Consequently, in case the market has already undergone the first stage of this correction, Bitcoin may experience further decline. A deeper pullback might lead the price towards another support area at $53,100. This level is the most important level for sustaining the long-term upward trend in cryptocurrency.

The next few days will probably be more indicative of where Bitcoin is headed. These levels are very important to the market participants as movement within this range will determine whether Bitcoin will continue with its upward movement or will remain within this range for a longer period.

Bitcoin’s Volatility Risks

Traders and investors arestill cautious given the increased volatility risks in the near-term BTC outlook. Though stable in the current market volatility, it remains elusive as to whether the cryptocurrency will strive towards its higher targets or fell towards the lower support levels.

At the time of writing, BTC is trading at $66,323 having fallen by 0.89% within the last 24 hours. In the last seven days, the cryptocurrency has also dropped by -1.26% which indicates that the prices are slowly being dragged down.

AD 4nXcLHR6KO4RaFAbs4BmtRivnyBhcGtARezNnPMB3JeHDTzfJIrkuUI4 7xqNF4td42M fDtll odWlIgi0l bHwqxGpVSbrc7lhWohwuN1 aFJw1gXb L5ibL1VKDQwMf FTKlhXml0ab3tuEJfA7E3 x Mf?key=VkGZGvcGvBFKoeCFfG66vw

Source: TradingView

However, the price drop has not affected the trading volume of Bitcoin as it stands at 24-hour trading volume of $28.84 billion. This high level of trading reflects that there is continuing flow of buyers and sellers in the market place irrespective of the previous recent price changes.

This has captured the attention of the broader crypto community, and many are simply observing the situation. If Bitcoin holds up near the current support levels, it could still be set to revisit $73,500 within the next few weeks. 

However, if the price drops to $53,100, it may hover around this level before the next upswing. With the market still unable to make a major move, all eyes are now on BTC’s next move in the next few days.

Bitcoin May Drop To $52,000 As Market Trends Show Bearish Signals

by

  • Ali Martinez predicts Bitcoin could drop to $52,000, pointing to a descending parallel channel pattern.
  • Market sentiment and the Long/Short ratio influence Bitcoin’s price shifts and potential corrections.
  • Bitcoin’s price volatility continues, with investors closely watching for signs of further decline or recovery.

Bitcoin could be set for a sharp decline, with some analysts predicting that the cryptocurrency could fall to $52,000. On Thursday, in another post on X, Ali Martinez pointed out that the price was in a descending parallel channel, a formation that has been associated with bearish action. This forecast is likely to further continue to make BTC experience the usual volatile fluctuations.

According to CryptoQuant, a popular analytical platfrom, capital flow is influenced by market sentiment when it comes to BTC pricing. The Long/Short Volume to Open Interest Ratio is an important factor to watch in this case. From this ratio, it is possible to see the relation of the investors who are bullish on the price of Bitcoin (long positions) and the investors who are bearish (short positions).

Bitcoin Sentiment Shift

A high Long ratio means that a large number of investors expect the price of Bitcoin to increase, which is a bullish sentiment. But when it gets out of hand and becomes overly optimistic, it can cause prices to be adjusting or corrected. On the other hand, a high Short ratio indicates that the market is bearish where the investors are waiting for the prices to fall. Surprisingly, this sentiment at its peak suggests that the market may soon rise.

Bitcoin price variation almost follows the variation in Long/Short ratio closely. Generally the price corrections are seen when the market is very long and when the sentiment is overly positive. When bearish sentiment is prevailing the market with more short positions, the price just bounces back because the market has gone too far in bearish direction. Regardless of being extremely bullish or bearish, these emotions frequently occur right before major changes in the price of Bitcoin.

AD 4nXc wTehyiS4TZtVrsRr7dAdwO7QF3 I8dgiLd9sH223lgPpt4Eevfk3Co1GYZNalvAs8j8duluHwms5WSz39JZDawewYHTxPL7FE3Th2FWAhn Y7RWkwoGPf0 hAvQayg7DCdramsoIibHCFiiHq6wbReUk?key=IUVXnQ 7aghQnH Pmq9GA

Source: Chart by CryptoQuant

Bitcoin Market Factors

While the Long/Short ratio is a helpful instrument for understanding the tendencies of the market, it is dangerous to base all decisions on it. Several factors affect the value of BTC and these include changes in the broader market as well as the psychological sentiments of investors. As of press time, BTC trades at $60,716, showing a 0.78% decline over the past day.

This comes as the price of Bitcoin oscillates around the current price while the possibility of another drop to $52,000 showcases the price trends of the crypto marke. tInvestors are paying attention to these bearish signs so as to gauge whether the cryptocurrency would bottom up or keep on declining. The next several days would prove decisive for the further development of the BTC price dynamics.

Bitcoin’s MVRV Surges Above SMA365, Signaling Strong Bullish Momentum

by

Bitcoin’s Market Value to Realized Value (MVRV) ratio is in the bullish territory once more, as data from the analytics platform CryptoQuant reveals. The MVRV, a market sentiment metric has gone above the 365-day moving average (SMA365), which might signal further upside for the cryptocurrency.

In the past, when Bitcoin’s MVRV is above its SMA365, it signals a bullish phase where the bulls are in control of the market. The MVRV has increased from 1.71 to 2.04 thereby presenting a positive change. This is important because the MVRV has recently climbed above its SMA365, which means that Bitcoin’s price is now likely to increase again. 

Consequently, the bulls have pushed BTC past $66,000 making it difficult to ignore this bullish signal for the cryptocurrency. This development may be a precursor to further price appreciation, going forward, as the sentiment on the market remains positive.

Strong Spot Demand for Bitcoin

Daan Crypto Trades, another popular crypto analyst, expressed similar sentiments in a recent post on X. He pointed out that throughout the last few weeks, BTC has been trading at a fixed spot premium, indicating active buying in the spot market. 

There is no perpetual futures premium, which is a pointing out that can only be regarded as a good thing because it is argued that this means that the kind of trading activity that is going on in the market today is not the result of speculative trading.

This persistent spot market trading is considered as a positive sign in the price stability of Bitcoin. Spot bids are closer to real market demand, and their appearance supports the thesis that the recent Bitcoin rally has a sound foundation. 

The current situation where Bitcoin’s MVRV has crossed above its SMA365 while the spot premium remains stable indicates that the market is in the bullish territory. While BTC is probing important price levels, these signals will be of great interest to traders and investors. In the following weeks, Bitcoin might be able to appreciate further if the current rally is to be continued. Despite the market remaining quite uncertain, the recent information indicates that the future of BTC in the short term is bright.