- The Pi Cycle Top indicator revealed that BTC had almost reached its market bottom.
- BTC was testing resistance, and a breakout could spark a bull rally.
Bitcoin [BTC] remained bearish as both the daily and weekly charts remained red. Nevertheless, the latest analysis suggested that a trend reversal would occur soon. That is why AMBCrypto has further investigated whether a trend reversal is possible.
Bitcoin will reach $120,000 in the coming months?
The king coin witnessed a 3% drop in price last week. The bearish trend continued over the past 24 hours and at the time of writing it was trading at $68.4k. While the bears remained dominant, a CryptoQuant analysis hinted that a big rally is in store.
coinLupin, an author and analyst at CryptoQuant, recently posted an analysis that took into account BTC’s MVRV ratio. According to the analysis, the MVRV was around 2, indicating that the area value of the market was twice as high as the estimated value on the chain.
The analyst used the 365-day Bollinger Band for MVRV and the 4-year average. The metric generally reflects Bitcoin’s cycle. The measurement of this metric showed that the uptrend remains intact, and the cycle peak typically occurs when the MVRV reaches levels between 3 and 3.6.
The analysis shows that an increase of 43% to 77% is necessary if the realized value (RV) remains the same. This equates to a target of $95,000 to $120,000 applied to Bitcoin.
Source: CryptoQuant
To check the likelihood of BTC heading towards $120,000, AMBCrypto reviewed Glassnode data. The Pi Cycle Top indicator revealed that Bitcoin’s price was quickly approaching its possible market bottom of $62.7k.
If the benchmark is to be believed, BTC’s possible market top was almost $116,000.
Therefore, given the Pi Cycle Top indicator and the CryptoQuant analysis, it did not seem too ambitious to expect BTC to begin its journey towards $120,000 in the coming months.
Source: Glassnode
What’s next for BTC in the near term?
Although BTC’s future prospects seemed optimistic, the current situation remained questionable.
That’s why AMCrypto reviewed its on-chain data to learn more about where BTC was headed as the world awaits the outcome of the US presidential election. Our analysis showed that BTC binary CDD turned red.
This meant that the movement of long-term holders over the past seven days was lower than the average. They have a motive to hold on to their coins. The NULP was also bearish as it indicated that investors were in a belief phase where they are currently in a state of high unrealized gains.
Source: CryptoQuant
Read Bitcoin (BTC) price prediction 2024-25
We then took a quick look at the daily chart of BTC to see what the market indicators were suggesting. At the time of writing, Bitcoin was testing resistance at its 20-day Simple Moving Average (SMA).
A successful breakout could trigger a bull rally. But if it is rejected, BTC could fall back to $65,000.
Source: TradingView