U.Today – According to CryptoQuant, we may be on the verge of a potential price rebound, judging by the MVRV indicator.
In a recent report, CryptoQuant noted that monitoring the Market to Realized Value (MVRV) ratio can be a valuable tool for investors to assist determine whether current market conditions are in line with historical currency trends.
While an MVRV of 3.7 indicates all-time highs, an indicator of one or lower suggests lows. Bitcoin’s MVRV is currently around 2.1, attempting to break the downtrend. If it manages to break this downtrend, we can expect a potentially piercing price rally upon a retest, similar to previous cycles.
At the time of writing, BTC price is down 0.84% in the last 24 hours to $64,396.
Critical levels to watch out for
Bitcoin rose above $66,000 on July 17 before falling below $65,000 and retesting that level for most of July 18. According to market analysts, $65,000 could be seen as “strong resistance.”
Bitcoin price is expected to continue to rise in the near future if the price breaks through the $65,000 level.
If that happens, Bitcoin could target the $66,000 level. A break there could send Bitcoin racing towards its current all-time high near $74,000.
On the downside, Bitcoin appears to be finding support near the $63,000 level.
Support provided by the 200-day SMA around $62,700 is near a zone where 1.7 million addresses previously bought around 840,920 BTC. Increased demand from this zone could push BTC prices higher on a decline.
