According to CoinMarketCap data, Bitcoin’s price is currently hovering around the $62,000 level, with no significant movements over the past day. It’s worth noting that the major cryptocurrency has been in a minor state of consolidation since Friday’s modest gains. However, for long-term investors, Bitcoin remained in a range-bound move extending into March. And while many investors highly expect a bullish breakout in the fourth quarter of 2024, certain market conditions must be met.

Related reading: Bitcoin futures liquidation forms Local price low – return to $65,000 inevitable?

Bitcoin MVRV, CQ Bull & Bear indicators show anxiety in the market

In Quick post on CryptoQuant, an analyst with the username burakkesmeci reports that the Bitcoin market is currently set on key price movements. Based on the MVRV ratio and CQ Bull & Bear metric, burakkesmeci notes that Bitcoin investors are currently showing a significant level of market expectation.

For context, the MVRV ratio compares Bitcoin’s current price to its realized value, i.e. the price at which the asset was last transferred on-chain. It is commonly used to indicate whether Bitcoin is undervalued or overvalued relative to its realized value.

When the MVRV indicator breaks above its 365-day straightforward moving average (SMA 365), it indicates a bullish trend as investors see year-over-year growth in their assets. Burakkesmeci notes, however, that Bitcoin’s MVRV of currently 1.90 since July has been hovering just below the 365 SMA (2.03), which shows that the BTC market remains in a stable position awaiting a breakout.

The analyst also observed a similar pattern in the CQ Bull & Bear indicator, which measures recent price action compared to long-term price movements. According to burrakesmeci, the CQ Bull & Bear indicator has been hovering slightly below the SMA 365 (0.46) since August, which supports the view that the Bitcoin market is in a stabilizing phase.

Factors that will trigger a Bitcoin rally

For Bitcoin to experience a bullish breakout from its current holding position, burakkesmeci highlights certain events that need to occur. First, it notes that the Federal Reserve must fully commit to a cycle of lower interest rates, gradually lowering them over time. Interestingly, after the 50 basis point cut in September, market experts suggest that the Fed will make another 25% cut at the next FOMC meeting in November.

Another factor supporting growth that burakkesmeci highlighted is the upcoming quantitative easing, as a result of which the US government will inject liquidity into the economy. Higher liquidity is expected to enable individuals to explore risky investments such as Bitcoin.

At the time of writing, Bitcoin is trading at $62,009 with a loss of 0.02% in the last 24 hours. Meanwhile, the daily trading volume of this asset dropped by 53.80% and is valued at $12.97 billion.