U.Today – According to CryptoQuant, it could be on the verge of a possible price rally, judging by the MVRV indicator.
In a recent analysis report, CryptoQuant noted that monitoring the market value to realized value (MVRV) ratio can be a valuable tool for investors, helping them determine whether current market conditions align with historical currency trends.
While an MVRV ratio of 3.7 indicates all-time highs, a ratio of one or less suggests lows. Bitcoin’s MVRV is currently hovering around 2.1, attempting to break out of a downtrend. If it can break out of this downtrend, a potentially sharp price increase could be anticipated after a retest, similar to previous cycles.
At the time of writing, BTC was down 0.84% over the past 24 hours to $64,396.
Critical levels to consider
Bitcoin broke above $66,000 on July 17 before falling back below $65,000 and retesting this level for most of July 18. According to market analysts, $65,000 could be considered “strong resistance.”
In the near term, a break above the $65,000 level is being eyed for a continuation of the Bitcoin price surge.
If this happens, Bitcoin could attempt to reach the $66,000 level. If it breaks above it, Bitcoin could target its current all-time high near $74,000.
In case of a price drop, Bitcoin seems to be establishing support near the $63,000 level.
The support provided by the 200-day simple moving averages (SMA) around $62,700 is close to the area where approximately 840,920 BTC were previously purchased by 1.7 million addresses. Increased demand in this area could push BTC prices higher in case of a dip.
This article was originally published on U.Today
