Bitcoin, the first and largest cryptocurrency by market capitalization, could be on the cusp of its next major move, and all eyes are on a key technical signal that might mark the start of its next leg higher.
According to crypto analyst Ali, Bitcoin’s Market Value to Realized Value (MVRV) Ratio is nearing a golden cross with its 30-day simple moving average (SMA).
Ali wrote in a tweet, “Watching for a golden cross between the MVRV Ratio and its 30-day SMA, which could mark the beginning of Bitcoin (BTC) next leg up.”
A golden cross happens when a short-term moving average crosses above a long-term one and often signals potential bullish momentum.
The MVRV ratio measures whether Bitcoin is overvalued or undervalued based on the average price at which coins were acquired. A golden cross in this context may indicate that BTC holders are entering profitable territory, which might be a setup for further upside if buying pressure increases.
However, like with the crypto markets, no indicator is fail-safe. Traders and investors should keep an eye out in the next few days to see if the golden cross confirms and Bitcoin ultimately breaks out of its current range.
Bitcoin currently in consolidation
Bitcoin continues in the $100,000-$110,000 range as profit-taking slows and activity measures decline. At the time of writing, Bitcoin was up 0.8% in the last 24 hours to $108,179.
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Despite Bitcoin price rebounding to the $100,000-$110,000 level, symptoms of declining profitability and slow on-chain activity are becoming more visible. These tendencies are typical of choppy consolidation periods when volatility diminishes and investor interest declines.
Until profitability and activity metrics improve, the possibility of a breakout to new all-time highs remains low. For the time being, the market looks to be digesting previous gains while waiting for new momentum and demand to emerge.
