Bitcoin has rebounded to around $95,000 but is facing resistance at its 365-day MVRV metric. Analyst Burak Kesmeci points to this MVRV resistance as pivotal for future pricing trends. Meanwhile, Bitcoin network transaction fees increased by 42%, indicating heightened activity, while exchange withdrawals suggest steady demand. Bitcoin is trading at $94,233 after minor declines, yet remains profitable in the long term.
The latest trading week has seen Bitcoin bounce back, reclaiming a position near the $95,000 mark. However, the momentum seems to have hit a wall recently, as minor retracements and ongoing consolidation in prices have been noted. Speculation is rife about whether Bitcoin can maintain this upward trajectory, and analyst Burak Kesmeci has shared views on what could influence BTC’s near-term price movement.
Kesmeci, in a post on X, highlighted that Bitcoin’s MVRV (Market Value to Realized Value) is currently encountering significant resistance at the 365-day simple moving average (365SMA). The developments around this situation could be crucial for Bitcoin’s mid-term forecast. Essentially, the MVRV is a pivotal on-chain metric assessing if Bitcoin is overvalued or undervalued compared to its realised price.
To break it down, the MVRV provides insights on profitability as well as market phases, identifying whether prices are peaking or bottoming out. The 365SMA offers an average of the MVRV ratios from the past year, acting as a threshold for medium-term trend reversals. When MVRV stays below the 365SMA, it usually signals a bearish environment, while a crossover above it delivers bullish confirmation.
Currently, Bitcoin’s MVRV registers at 2.13, hovering just below its 365SMA of 2.14. For a sustained bullish market to be confirmed, a crossover is necessary, indicating a possible shift in mid-term trends following Bitcoin’s long phase of corrections noted earlier this year.
In other news, the on-chain analytics provider IntoTheBlock has revealed a notable surge in Bitcoin network fees, which shot up by 42% in the last week. This spike has seen traders racking up $4.03 million in transaction fees, reflecting a heightened level of activity across the network. Additionally, exchanges have recorded net withdrawals of $356 million, a pickup from the previous week but significantly down from the staggering $1.3 billion in withdrawals prior.
This sustained rise in network engagement, coupled with ongoing withdrawal from exchanges, suggests persistent demand amidst positive market sentiment for Bitcoin. As for the current trading status, Bitcoin sits at $94,233, showing a decline of 0.78% over the last day. Still, on the broader timeline, the cryptocurrency is in the green, boasting gains of 11.27% and 8.59% over the last week and month, respectively.
