The Bitcoin price has been moving between USD 10,000 and USD 11,000 for weeks. So far, the bulls have been able to defend the $ 10,000 mark well and the bears have prevented the break through the $ 11,000 mark.
An important on-chain indicator currently shows that the Bitcoin price could experience an upward breakthrough in the near future. The indicator is currently moving towards a historic turning point that could bring a positive trend with it.
Bitcoin price on-chain indicator shows possible trend reversal
The Blockchain Analysis Glassnode provides extensive on-chain data on Bitcoin and other cryptocurrencies. One of the most interesting BTC on-chain indicators from Glassnode is the MVRV ratio.
The CTO of Glassnode and co-founder Rafael Schultze-Kraft announced that the Short Term Holder MVRV Ratio is currently reaching the historic turning point of 1.0.The ratio gives an insight into whether short-term BTC investors consider the current Bitcoin price to be overvalued or undervalued.
According to the CTO, the current MVRV ratio of 1.0 indicates that the Bitcoin price could soon experience an upward breakout.
Bitcoin STH-MVRV ratio has been above one since April. The support line is currently being tested at 1 (indicative of a trend reversal) – short-term owners rate BTC at its realized price.
Short Term Holder MVRV is bullish for the Bitcoin price
As can be seen from the chart below, the indicator rebounded cleanly from 1.0-1.1 several times during Bitcoin’s rally in 2017. This led to a recovery from the Bitcoin price from around USD 500 to USD 20,000.
The indicator shows its informative value on both sides. The Bitcoin price has ricocheted several times from the lower side, as you can see in the diagram.
Bitcoin course MVRV
This historical accuracy suggests that Bitcoin price could have scope for an upward move as the indicator approaches a crucial historical reversal level.
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There is no way around the first crypto currency
Raoul Pal, Real Vision CEO and former head of hedge fund sales at Goldman Sachs, recently said:
Most people don’t understand the latter, but to put it simply, Powell has shown that there is ZERO tolerance to deflation, so they will do ANYTHING to stop it, and that’s good for the two toughest investments – gold and Bitcoin .
Powell WANTS inflation. I don’t think he will get real demand push inflation, but he will get fiat devaluation in conjunction with the other central banks all on the same mission.
He believes that the macro trends for the Bitcoin price will drive well over USD 100,000 in this market cycle. Pal previously said the cryptocurrency could be the top performing asset in the next few years. He even went so far as to say that other assets could be inferior to Bitcoin.
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