Following the approval of the spot Bitcoin Exchange Traded Fund (ETF) in the United States by the Security and Exchange Commission (SEC), Bitcoin experienced a downside momentum of over 20% in 12 days until January 23, 2024. However, after this downward trend, Bitcoin experienced an upside momentum of 11% starting from January 24, 2024. During this period, BTC’s price moved in a way that its MVRV ratio fell below its 90-day average, signaling a bullish momentum.
Bitcoin MVRV momentum chart signals bullish momentum
According to data from on-chain analytic firm Glassnode, whenever the Bitcoin MVRV ratio fell below its 90-day average, a significant upside momentum in the market followed. This pattern appeared 4 times on the Bitcoin MVRV momentum chart in 2023 alone, and with a 100% success rate, the BTC price experienced upside momentum. This same info is also shared by a prominent analyst Ali on X.
Currently, Bitcoin is trading near $43,300, and in the last 24 hours, it experienced a slight 0.50% downside momentum. Looking at Bitcoin over a longer period, in the last 7 trading days, BTC experienced over 8% upside momentum, while in the 30 trading days following the Bitcoin ETF approval and subsequent market fall, and the recent bullish momentum, BTC has experienced over 2% upside momentum.
Also Read: Bitcoin back on track, Eyes 5th monthly gain amidst ETF impact
Bitcoin technical analysis and potential to hit $46,000 level
According to expert technical analysis, Bitcoin on a daily time frame is at the line of an inverted Head and Shoulder bullish pattern and is also attempting to break this neckline. However, in the 4-hour time frame, alongside its bullish price action pattern, Bitcoin is forming a bullish golden crossover.
Considering all the on-chain data, price action patterns, and technical indicators, Bitcoin appears bullish. Traders or investors need to understand that if the Bitcoin price closes its 4-hour candle above $44,000, there is an 80% chance that Bitcoin will initially reach $46,000 and later $48,000. However, this is a technical outlook and not a price prediction.
In addition to Bitcoin’s price movements, if we examine the Bitcoin miners’ reserve, it has currently reduced by 12,755 BTC, indicating that miners have sold these Bitcoins during or before the Bitcoin ETF approval. However, this small 12,755 BTC dump by miners has not had any impact on the Bitcoin price, as asset managers still appear eager for Bitcoin, viewing the current BTC price as a discounted opportunity.
