According to data from CoinMarketCap, bitcoin is currently hovering around the $62,000 price mark without any significant movement in the last day. Notably, the leading cryptocurrency has fallen into a state of minor consolidation since the small gains recorded on Friday. However, for long-term traders, bitcoin has remained in a range of motion that extends into March. And while many investors are looking forward to a bullish breakout in the fourth quarter of 2024, certain market conditions must be met.
Related Reading: bitcoin Futures Liquidation Forms Local Lowest Price: Is a Return to $65,000 Inevitable?
bitcoin MVRV, CQ Bull & Bear Indicators Show Market Concern
in a Quick post On CryptoQuant, an analyst with username burakkesmeci shares that the bitcoin market is currently primed for key price moves. Burakkesmeci, based on the MVRV index and the CQ Bull & Bear metric, notes that bitcoin investors are currently showing a significant level of market anticipation.
For context, the MVRV index compares the current price of bitcoin to its realized value, that is, the price at which the asset last moved on-chain. It is generally used to indicate whether bitcoin is undervalued or overvalued relative to its realized value.
When the MVRV index crosses above its 365-day simple moving average (365 SMA), it indicates an uptrend as investors are seeing a year-to-date gain in their assets. However, burakkesmeci notes that bitcoin's MVRV currently at 1.90 has been hovering just below its 365 SMA (2.03) since July, showing that the btc market remains in a stable position awaiting a breakup.
The analyst also observed a similar pattern on the CQ Bull & Bear indicator, which measures recent price action relative to longer-term price movements. According to burrakesmeci, the CQ Bull & Bear metric has been oscillating slightly below its 365 SMA (0.46) since August, reinforcing the notion that the bitcoin market is in a holding pattern.
<img class="wp-image-646518 size-large" src="https://technicalterrence.com/wp-content/uploads/2024/10/Bitcoin-Steady-as-Bullish-Breakout-Awaits-These-Conditions-–-Details.png" alt="bitcoin” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/10/bC9Q7_33761a265dade9a033a3c8019129c7d258f763255f1f5442e4ab295511be5959.png?w=1280 1280w, https://www.newsbtc.com/wp-content/uploads/2024/10/bC9Q7_33761a265dade9a033a3c8019129c7d258f763255f1f5442e4ab295511be5959.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/10/bC9Q7_33761a265dade9a033a3c8019129c7d258f763255f1f5442e4ab295511be5959.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/10/bC9Q7_33761a265dade9a033a3c8019129c7d258f763255f1f5442e4ab295511be5959.png?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/10/bC9Q7_33761a265dade9a033a3c8019129c7d258f763255f1f5442e4ab295511be5959.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/10/bC9Q7_33761a265dade9a033a3c8019129c7d258f763255f1f5442e4ab295511be5959.png?w=1140 1140w” />
Factors that will cause a bitcoin rally
For bitcoin to experience a bullish breakout from its current position, burakkesmeci highlights certain events that must occur. First, it notes that the Federal Reserve should fully engage in a rate-cutting cycle, gradually lowering interest rates over time. Interestingly, after a 50 basis point cut in September, market experts are leaning on the Fed to implement another 25% cut at its next FOMC meeting in November.
Another bullish factor highlighted by burakkesmeci is an imminent quantitative easing that will see the US government inject liquidity into the economy. Greater liquidity is expected to allow people to explore risky investments like bitcoin.
At the time of writing, bitcoin is trading at $62,009 with a loss of 0.02% in the last 24 hours. Meanwhile, the asset's daily trading volume dropped by 53.80% and is valued at $12.97 billion.
x/KNaK2Ca0/” alt=”bitcoin” />
