Following Bitcoin’s price swings witnessed in the past weeks, a crypto expert has predicted a potential resurgence of bullish momentum in the short term. However, the crypto asset must recover a certain level in order to unlock the next significant price surge.
A Key Metric Could Kickstart Next Rally
Bitcoin continues to face notable setbacks, causing a lengthy period of consolidation, which has raised concerns about its path going forward. Nonetheless, there is hope once again as Kyle Doops, a market expert and trader has predicted that BTC could regain its upbeat momentum once it reclaims a key metric, particularly the Short-Term Holder (STH) MVRV metric.
The Short-Term Holder (STH) MVRV is the price of BTC divided by the realized price of short-term holders. Specifically, it is a key indicator that evaluates the ratio between the asset’s market value and realized value that has been held for a period of time below 155 days.
According to the market expert, the metric is essential to monitor the Short-Term Holder (STH) group in order to identify new market demand and predict price fluctuations in the near term as the community remains hopeful about a possible uptrend that might indicate a persistent long-term bullish trend.
He pointed out that a positive sentiment around BTC was recently triggered by the spot price going past the $62,500 cost basis for the STH group. However, the price has once again fallen below the $62,500 mark, suggesting a reduction in optimistic sentiment.
With the price currently trading below the range, the expert contends that it is crucial that Bitcoin regain this level to reignite its bullish momentum. Kyle Doops’ assertion that the resurgence of Bitcoin‘s upward movement hinges on this metric implies that the crypto asset’s path to further gains could be delayed unless it recovers this level.
BTC At A Critical Psychological Turning Point
Leading on-chain data platform, CryptoQuant has also offered insights about BTC’s recent price action, noting that the digital asset is at a point that could determine its next trajectory.
The crypto analyst with the username Datascope highlighted that based on previous data, the price of BTC is currently positioned between a critical psychological turning point and an optimistic zone. This area marks a key juncture where market players develop a positive or negative outlook based on profit earnings.
According to historical data, the Bitcoin bull market must remain stable in these vital areas to maintain the trend. As long as the crypto asset stays within the range, the expert is confident that a large decline is “unlikely.”
At the time of writing, Bitcoin was hovering between $61,100 and $61,200, demonstrating a nearly 2% decline in the past day. Despite the decline, its trading volume has increased by over 9% in the last 24 hours.
Featured image from Unsplash, chart from Tradingview.com
Source: https://bitcoinist.com/bitcoin-bullish-momentum-hinges-on-key-metric/