BTC MVRV momentum shows a potential return to bullish territory

• Bitcoin MVRV momentum shows a potential return to bullish territory.
• BTC has surged by 4.95% over the past week.

Over the past week, Bitcoin [BTC], has experienced a strong upward momentum. The price recovery has seen BTC reclaim higher resistance levels thus reviving market optimism.

In fact, as of this writing, BTC was trading at $63,062. This marked a 4.95% increase over the past week.

These gains on weekly charts have pushed BTC to record positive gains on monthly charts recovering from a monthly low of $52,546 by a 3.95% rise.

Undoubtedly, these recent price movements have sparked widespread discussion among analysts. One of them is the popular crypto analyst Ali Martinez who has predicted an upcoming bullish run citing the MVRV momentum.

What market sentiment says

In his analysis, Martinez cited the latest shift of MVRV from negative to bullish territory.

Source: X

According to his analysis, MVRV shifted to negative momentum in late April. During this period, BTC declined from a high of $67,241 to a local low of $49,577 before a short recovery and another decline.

Based on this observation, after a long period of negative momentum, now MVRV shows a return to bullish if it manages to close above its 90-day moving average.

What this means is that the downtrend is reversing, and the market could shift back to bullish with the potential for further gains.

For example, the last time, it fell below its 90-day MA was mid-2023. After a recovery, prices stabilized followed by a sustained rise.

Therefore, with the market having utilized the buying opportunity, BTC is well-positioned for price growth.

What BTC charts suggest

As observed by Martinez,  BTC market is showing a potential return to bullish territory after a sustained period of decline. Thus, the current market sentiment could set Bitcoin for further price growth.

Source: CryptoQuant

For example, Bitcoin’s NVT ratio has declined from 33.3 to 20.1 over the past week suggesting that on-chain transaction volume is growing faster than MC.

This acts as a bullish indicator as it implies the network is being used actively and the price is less valued compared to the utility. Such a decline signals investor’s confidence in the network’s long-term viability.

Source: Cryptoquant

Additionally, Bitcoin’s supply in loss has declined over the past week from 4.2 million to 2.8 million. This decline suggests that the BTC price is rising pushing previous underwater assets into profitability. This is another bullish signal indicating upward momentum.

Source: Cryptoquant

Finally, Bitcoin’s Exchange supply ratio has declined over the past week from a high of 0.13128 to 0.1308. This indicates that holders are moving their BTC from exchanges to cold wallets.

Read Bitcoin’s [BTC] Price Prediction 2024-25

This suggests holding behavior for long term rather than selling. Such activity reduces selling pressure, which is usually a bullish sign.

Therefore, as observed, BTC is increasingly enjoying higher investor favorability. If the current market sentiment holds, BTC will challenge the next resistance level of $64262.