Bitcoin Primed for Surge Reflecting Historic Bull Trends, Ali's Analysis Predicts
Summary:
Bitcoin is predicted to surge, reflecting historic bull market trends, according to recent analysis from online commentator, Ali. Using traditional BTC price indicators, the market value to realized value (MVRV) gauge shows BTC/USD MVRV is on par with the mean level, as seen in 2016 and 2020 before significant highs. A potential bounce could see Bitcoin reaching the 1.0 standard deviation line at $60,000. The Ichimoku Cloud analysis also supports an ongoing Bitcoin bull market.
Bitcoin (BTC) appears ready for a significant "rise," echoing historic bull market signals, according to recent analysis. Widely followed online commentator Ali utilized vintage BTC price indicators to predict this possible trend, as he reported on social media platform X, formerly known as Twitter, on January 30. Despite difficulties that arose due to the launch of the spot exchange-traded fund (ETF), Ali remains optimistic about the bigger picture of Bitcoin's trajectory.
Ali draws confidence from multiple indicators, one of them being the market value to realized value (MVRV) gauge — a traditional instrument used by on-chain analytics company, Glassnode, to calculate Bitcoin's "true value." Substantial deviations from the mean MVRV often align with the peak of the bull market or the bottom of bear market.
Currently, the BTC/USD MVRV is on par with the mean level. This pattern, fluctuating above and below it, was evident in both 2016 and 2020, prior to the initiation of a run to record-breaking highs.
Ali commented that Bitcoin typically performs well after reaching the mean MVRV rate. The current scenario is following the same trend, and with a recent bounce from the mean MVRV at $40,500, there's potential for $BTC to rocket to the 1.0 standard deviation line at $60,000!
Earlier this week, Cointelegraph noted a steady decline in another factor assessing stablecoin supply and BTC supply. The stablecoin supply ratio (SSR) is currently 80% below its own record high seen only three months ago, further enhancing the possibility of Bitcoin price increase.
Furthermore, Ichimoku Cloud analysis also endorses the wider Bitcoin bull market narrative. However, following the retreat from the two-year highs of $49,000 earlier in January, a price fall beneath the Tenkan-sen conversion line took place, which has since established itself as resistance, hindering ascension, according to Cointelegraph Markets Pro and TradingView data.
CryptoCon, a prominent trader, warned in his January 13 post on platform X about the potential for a midterm peak based on Ichimoku and advised that the January record might persist. He stated, "There was a notion that with ETFs in play, there wouldn't be any more downward corrections, but that's clearly not the case". CryptoCon added, "this time won't be different unless the price distinctly proves otherwise, which it hasn't yet."
This report isn't intended as investment advice or recommendations. Every investment or trading move comes with risk, and readers are advised to conduct their own thorough research prior to making any decisions.
Published At
2/1/2024 2:45:21 PM
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