According to data from CoinMarketCap, Bitcoin is currently hovering near the $62,000 price level without any significant movement in the past day. Notably, the first cryptocurrency has entered a slight consolidation phase since the small gains recorded on Friday. However, for long-term traders, Bitcoin still continues to move in line with the range since March. And while many investors are expecting a bullish exit in Q4 2024, certain market conditions must be met.
Related Reading: Bitcoin Futures Liquidation Forms Local Price Bottom – Is A Return To $65,000 Inevitable?
Bitcoin MVRV, CQ Bull & Bear Indicators Show Market Restlessness
In a Quicktake post on CryptoQuant, an analyst with the username burakkesmeci shares that the Bitcoin market is currently set for a significant price move. Based on the MVRV Ratio and the CQ Bull & Bear metric, burakkesmeci notes that Bitcoin investors are currently showing a significant level of market enthusiasm.
In context, the MVRV Ratio compares the current price of Bitcoin with its observed value i.e. the price at which the asset was last moved on the chain. It is often used to indicate that Bitcoin is considered undervalued or overvalued compared to its face value.
When the MVRV ratio crosses above its 365-day Simple Moving Average (SMA 365), it indicates a positive trend as investors see year-to-date gains in their assets. However, burakkesmeci notes that Bitcoin’s MVRV currently at 1.90 has been hovering just below its SMA 365 (2.03) since July indicating the BTC market remains in a strong position awaiting an exit.
The analyst also noticed a similar pattern in the CQ Bull & Bear indicator that measures recent price action relative to long-term price movements. According to burrakesmeci, the CQ Bull & Bear metric has been moving below its SMA 365 (0.46) since August forcing the view that the Bitcoin market is in a holding pattern.
Things That Will Spark a Bitcoin Rally
In order for Bitcoin to experience a bullish breakout from its current holding position, burakkesmeci highlights certain events that must occur. First, he notes that the Federal Reserve should fully engage in a rate-cutting cycle, gradually lowering interest rates over time. Interestingly, following the 50 basis point cut in September, market experts are tipping the Fed to implement another 25% cut at their next FOMC meeting in November.
Another thing that burakkesmeci highlighted is the coming rate liberalization that will see the US government injecting more money into the economy. It is expected that higher fees will 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 daily trading volume of the commodity decreased by 53.80% and has a value of 12.97 billion dollars.
