Bitcoin’s price has been a bit sluggish lately. After hitting a high of around $124,000 in July, it hasn’t really taken off again. Last week, it even dipped below $112,000! But things got a bit brighter after Fed Chair Jerome Powell’s speech.
A Key Price Level: $118,000
Crypto analyst Ali Martinez thinks $118,000 is a super important price point for Bitcoin. He says Bitcoin needs to get back above this level to start a new bull run.
Understanding the MVRV Momentum Indicator
Martinez is using something called the Glassnode MVRV (Market Value to Realized Value) Momentum indicator to make his prediction. This indicator helps figure out overall market trends. It combines the MVRV ratio with a 70-day moving average.
- Above the 70-day average: This usually means lots of Bitcoin was bought at lower prices, and current holders are making a profit. It’s a bullish sign.
- Below the 70-day average: This suggests a lot of Bitcoin was bought at higher prices, meaning holders are losing money. It’s a bearish sign.
Martinez’s chart shows Bitcoin is at a turning point. The 70-day average is around $118,000, and if the MVRV ratio breaks above it, that could signal a bullish shift.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading around $116,217. That’s up over 2% in the last 24 hours, but still slightly down for the week.
