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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Price Recovery Hinges On This Key Market Indicator, Reveals Analyst

Samuel Edyme
Samuel Edyme
9 months ago
3 mins read
Bitcoin Price Recovery Hinges On This Key Indicator, Reveals Analyst

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The crypto market has recently seen some ups and downs, with Bitcoin facing many fluctuations. According to a recent post by a CryptoQuant analyst known as ‘Kripto Mevsimi,’ the Bitcoin Market Value to Realized Value (MVRV) ratio has dipped below its 365-day moving average.

This specific indicator often identifies potential market bottoms and zones where recovery could begin. While the drop in MVRV could suggest an “opportunity for long-term investors,” the analyst warns that caution is needed.

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Bitcoin’s Leverage Ratio Hits New High: What Does This Mean BTC?

9 months ago

Bitcoin Will Recover If Its MVRV Does This

The MVRV (Market Value to Realized Value) ratio is a metric used in cryptocurrency to assess whether an asset, like Bitcoin, is overvalued or undervalued relative to its “realized value.”

Market Value refers to the asset’s current price multiplied by its total circulating supply, essentially the market capitalization.

Realized Value is calculated by summing the value of each coin at the price it was last moved on-chain, giving a picture of what the network participants paid for their holdings.

According to Mevsimi, historically, when the Bitcoin MVRV ratio breaks back above its 365-day average, it has been followed by a renewed sense of optimism in the market, often signaling the start of a “more sustainable upward trend.”

Bitcoin MVRV ratio.
Bitcoin MVRV ratio. | Source: CryptoQuant

However, the current economic environment, marked by ongoing macroeconomic uncertainties, suggests that Bitcoin’s recovery could take longer.

In the meantime, the analyst advises investors to maintain a balanced outlook, noting:

Therefore, maintaining a measured and balanced perspective is essential. A positive outlook is understandable, but it should be tempered with awareness of the broader risks until the MVRV ratio confirms a more sustained upward momentum.

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11% Of Bitcoin Supply In Coinbase’s Hands: Analyzing The Potential Risks

9 months ago

Buy Signal Identified In BTC

Meanwhile, Despite the current state of the MVRV ratio, Bitcoin’s price has shown some signs of recovery in as of today. After briefly dipping below the $58,000 mark earlier in the day, the asset has reversed its trajectory, gaining 1.2% to reach a price of $58,463 at the time of writing.

Bitcoin (BTC) price chart on TradingView
BTC price is moving sideways on the 1-hour chart. Source: BTC/USDT on TradingView.com

Crypto analyst Mags took to X to highlight a key bullish signal: the Bitcoin hash ribbon. According to Mags, the Bitcoin hash ribbon indicator has flashed a buy signal, historically one of the “most reliable” indicators for Bitcoin’s price movement.

Bitcoin price and hash ribbons.
Bitcoin price and hash ribbons. | Source: Mags on X

Mags mentioned that every time this signal appeared, it was followed by a significant price surge, giving traders reason to believe that Bitcoin could see a bullish breakout soon.

#Bitcoin – hash ribbon flashed a buy signal.

Historically, this has been one of the most reliable indicators for Bitcoin.

Every time we’ve seen this signal, it’s often followed by a massive pump in BTC! pic.twitter.com/hXFLkTKXTH

— Mags (@thescalpingpro) September 13, 2024

Featured image created with DALL-E, Chart from TradingView

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Samuel Edyme
Samuel Edyme

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Read more

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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