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Bitcoin’s price shows signs of recovery, with the MVRV ratio bouncing off a historically strong level, signaling potential early bull market conditions.
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649,600 BTC, valued at $61.6 billion, was purchased between $95,193 and $97,437, establishing strong support for future gains.
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Bitcoin aims to break $95,761 resistance; a successful breakout could push BTC toward $98,000 and ultimately $100,000, though failure to hold support at $93,625 risks a decline.
Bitcoin is witnessing potential recovery signs and strong support levels, paving the way for an optimistic outlook toward the $100,000 milestone.
Bitcoin Investors Are Eager For Profits
The MVRV (Market Value to Realized Value) ratio has recently bounced off the mean line of 1.74, which is historically a strong point of confidence for Bitcoin. When this ratio rebounds from the 1.74 level, it often signals the early stages of a bull market. This market structure closely mirrors the one seen during the previous consolidation phase in 2024, which culminated in a peak during the yen-carry-trade unwind in August.
Following this, Bitcoin experienced a sharp price jump in September 2024, validating the bullish signal provided by the MVRV ratio. As Bitcoin’s price approaches this key level once again, there is potential for similar price action.
Bitcoin MVRV Ratio. Source: Glassnode
Bitcoin’s overall macro momentum is supported by strong demand from investors. According to the IOMAP (In/Out of the Money Around Price) data, approximately 649,600 BTC, valued at over $61.6 billion, were purchased between $95,193 and $97,437. This accumulation establishes a solid support level for Bitcoin, should BTC holders refrain from selling immediately to break even. BTC could rise further if greed drives these investors to hold instead of selling immediately.
Combined with early signs of a bull market, Bitcoin could reach the $98,000 resistance, validating the profitability of the $61.6 billion worth of BTC bought at these levels and securing the range as support. The increasing number of buyers in this range creates a strong foundation for Bitcoin’s price to surge further.
Bitcoin IOMAP. Source: IntoTheBlock
BTC Price Aims At Breakout
Bitcoin’s price has shown a short-term uptrend over the past three weeks, currently trading at $94,748. Although Bitcoin has been consolidating below the $95,761 level for the past week, it is poised for a possible surge. The positive momentum indicates that Bitcoin may break through the current resistance and continue its upward trajectory.
If Bitcoin manages to secure $95,761 as support, it could begin its climb toward $98,000. Breaking this resistance would open the path for Bitcoin to target the next key level of $100,000, remaining a major psychological barrier for investors. With strong support levels and positive market sentiment, Bitcoin could reach these milestones sooner than expected.
Bitcoin Price Analysis. Source: TradingView
However, if Bitcoin fails to breach $95,761 and falls through the support at $93,625, it could face a decline to $91,521. This drop would invalidate the short-term bullish outlook, signaling potential market weakness. A reversal at these levels would require close monitoring of market conditions to determine the next potential price movements.
Conclusion
In summary, Bitcoin’s current price action coupled with historical support levels paints an optimistic picture for investors eyeing significant returns. The combination of strong demand indicators and potential bullish market signals could catalyze a surge towards critical price milestones in the near future.
