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bitcoin price has seen a significant surge since Tuesday, following the Federal Reserve’s announcement of a 50 basis point interest rate cut. This move pushed btc above the critical $62,000 mark, a psychological level that has become a turning point for investor sentiment. Now that bitcoin is testing local supply, market participants are on the lookout for further upside potential.
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As the price continues to climb, analysts are pointing to crucial data that indicates a possible change in bitcoin’s trend after months of bearish price action. Metrics from Glassnode 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 as they assess whether bitcoin’s rally has staying power or if the market will face resistance at higher levels.
With renewed momentum, the next few days will be crucial in determining whether bitcoin can maintain this upward trajectory and fully break out of its previous bearish phase.
bitcoin shows signs of a bullish comeback
bitcoin investors have seen their sentiment change dramatically, from fear to hope, in just a few days. Following the Federal Reserve’s rate cut announcement on Wednesday, bitcoin surged by over 8%, breaking critical levels and putting local supply to the test. This sudden price action has sparked renewed optimism in the broader cryptocurrency market, giving investors hope for a fresh start after months of bearish price movements.
Prominent cryptocurrency analyst Ali Martinez has shared x.com/ali_charts/status/1837152066721960416″ target=”_blank” rel=”nofollow”>Valuable information about xdrawing attention to key data from Glassnode that suggests a significant shift in bitcoin’s price trend. Specifically, Ali highlights the market cap to realized value (MVRV) ratio, which tracks the difference between btc’s market price and its actual value.
The MVRV ratio, which had been in a downtrend since April, is now rising, indicating that bitcoin may be regaining strength. Ali notes that the MVRV is a critical indicator for assessing momentum, and the current uptrend hints at a possible return to bullish territory.
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The analyst further explains that if the MVRV can close above its 90-day moving average, it would confirm a stronger bullish outlook for bitcoin. Given the aggressive price surge and rising 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 consider
bitcoin (btc) is trading at $63,024 after days of consistent “up-only” price action since hitting local lows. The price recently broke above the 200-day daily exponential moving average (EMA) at $59,350 and is now testing the critical 200-day daily moving average (MA) at $63,954.
This 200-day daily moving average is a key long-term indicator that signals the overall strength of the market. If bitcoin manages to reclaim this level as support, it would likely trigger a significant price increase, reinforcing the bullish outlook.
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For the bulls to maintain the momentum, the next target would be around this critical level, with a potential push towards $65,000, a price last tested in late August. However, if btc fails to hold above $60,000 in the coming days, investors may see a pullback to lower demand levels. The ability to hold above the key support zones will determine the next phase of price action.
Featured image of Dall-E, chart from TradingView
