Bitcoin has regained its footing after a turbulent week of selling pressure, reclaiming crucial support levels and signaling the first signs of recovery. Bulls are taking a cautious step back, although conviction remains limited as the $110,000 resistance – a key psychological and technical barrier – has yet to be tested.
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According to data from CryptoQuant, underlying market dynamics suggest that a continuation of current momentum could fuel a potential surge towards $115,000. The recovery follows a period of increased liquidations and bearish sentiment, which briefly pushed Bitcoin below $100,000, causing panic among short-term traders.
Statistics about the chain now show an improvement in stability on several fronts. Outflows from currency exchanges have increased, indicating that investors are taking control of BTC again, a sign of renewed investment behavior. At the same time, derivatives market data point to a cooling of open interest rates and reduced debt burdens – conditions that historically precede healthier, more sustainable upward trends.
Short-Term Holder MVRV Suggests Potential for Bitcoin Recovery
Top analyst Axel Adler highlights that Bitcoin’s Short-Term Holder (STH) MVRV ratio is showing the first signs of recovery after last week’s sharp correction. On November 7, the metric hit a local low of 0.9124, near the lower end of its historical range – a zone that often aligns with short-term market bottoms.
As of today, the STH MVRV has risen to 0.9514, indicating that selling pressure among short-term holders may be easing. This stabilization signals a possible shift from capitulation to recovery as traders who bought at higher levels begin to unwind their losing behavior.
Historically, when the STH MVRV stays above 0.92 and begins an uptrend, it often precedes renewed bullish momentum. Adler notes that if this pattern continues, the value could rise to the upper end of its range, which typically involves price levels between $115,000 and $120,000.
This trend is consistent with Bitcoin’s recent technical recovery and improving on-chain sentiment. While further confirmation is needed, maintenance of the MVRV above this critical threshold could indicate that the market has absorbed much of the near-term selling pressure, laying the groundwork for a possible recovery phase in the coming weeks.
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Regaining ground after sharp correction
Bitcoin is showing the first signs of recovery after a volatile decline below $100,000, recovering key technical levels and stabilizing around $105,000. The daily chart shows a short-term bullish reaction following the rebound from the 200-day moving average (red line) – a critical dynamic support level that has repeatedly marked the bottom of corrective phases throughout this cycle.
However, the broader trend remains cautious. The 50-day (blue) and 100-day (green) moving averages are above the current price, and both are leveling off, indicating that momentum remains weak. A decisive break above the $108,000 – $110,000 resistance zone is needed to confirm a potential trend reversal and change sentiment.
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If Bitcoin maintains support above $103,000 and consolidates on rising volume, the next target could be in line with the $115,000 region – in line with on-chain signals pointing to a recovery. Conversely, a breakdown below $100,000 could reopen downside risk towards $95,000.
Featured image of ChatGPT, chart from TradingView.com