After the Bitcoin price fluctuations witnessed in recent weeks, one cryptocurrency expert predicted a possible return of bullish momentum in the market. short term. However, crypto assets must recover to a certain level in order to unlock the next big price rise.
The main scale can start the next rise
Bitcoin continues to face notable setbacks, causing a long period of consolidation, raising concerns about its future trajectory. However, there is hope again said Kyle Dobbs, market expert and trader anticipation That BTC could regain its bullish momentum once a key metric recovers, especially the MVRV metric for short-term holders (STH).
Short Term Holder (STH) MVRV is a price Bitcoin Divided by the price realized to short-term holders. Specifically, it is a leading indicator that evaluates the ratio between the market value of an asset and its realized value that has been held for a time period of less than 155 days.
According to a market expert, the metric is essential to monitor the Short Term Holders (STH) pool in order to identify new market demand and forecast near-term price fluctuations as the community remains optimistic about a potential uptrend that may indicate a continuation in the long term. Uptrend.
He noted that the positive sentiment around BTC arose recently due to the spot price surpassing the cost basis of $62,500 for the STH pool. However, the price fell back below the $62,500 level, indicating a decline in optimistic sentiment.
With the price currently trading below the range, the expert stresses that it is crucial for Bitcoin to regain this level to reignite its bullish momentum. Kyle Dobbs confirmed that he is making a comeback BitcoinAn upward movement that stops on this metric indicates that the crypto asset’s path to further gains may be delayed unless it recovers to this level.
BTC is at a critical psychological turning point
The leading on-chain data platform, CryptoQuant also has I offered Insights into BTC’s recent price action, noting that the digital asset is at a point that could determine its next path.
A cryptocurrency analyst with the username Datascope highlighted that based on past data, BTC price is currently located between a critical psychological turning point and an optimistic zone. This area represents a major juncture where market players develop positive or negative expectations based on it Profit profits.
According to historical data, Bitcoin bull market It must remain stable in these vital areas to maintain the trend. As long as cryptocurrency assets remain within the range, the expert is confident that a significant decline is “unlikely.”
At the time of writing, Bitcoin is hovering between $61,100 and $61,200, showing a decline of approximately 2% in the past day. Despite this decline, trading volume has increased by more than 9% over the past 24 hours.
Featured image from Unsplash, chart from Tradingview.com