Crypto analyst Doctor Profit suggests Bitcoin’s price is nearing a local bottom, as the MVRV indicator points to a potential range of $68,000 to $74,000.
By Bhushan Akolkar
Updated
2 mins read
Despite the cooling US inflation data for February, Bitcoin BTC $84 457 24h volatility: 0.7% Market cap: $1.68 T Vol. 24h: $25.95 B has continued to be under selling pressure as bulls are unsuccessful at breaching the crucial resistance of $84,000.
Amid the initial optimism following the US Consumer Price Index (CPI) numbers, market analysts have asked investors to be patient and cautious until a clear signal for an upside momentum.
Bitcoin’s price could be approaching the local bottom, according to insights from the Market Value to Realized Value (MVRV) indicator, says popular crypto analyst Doctor Profit.
The analyst noted that the current data suggests Bitcoin’s price is aligning with the indicator’s signals, projecting a range of $68,000 to $74,000 as a potential local bottom, provided no Black Swan event disrupts the market. This aligns with broader market sentiment anticipating a further BTC price dip before resuming the upward trajectory.
Similarly, crypto analyst Justin Bennet highlighted a critical resistance level for Bitcoin, flashing caution ahead on a macro scale. “Bitcoin closed February below $92,000. That happened. There’s nothing else to wait for,” Bennet stated, pointing out that March has continued to find resistance at the same level.
He further stated that it is important for Bitcoin to close above $92,000 on a monthly basis, for a stronger upside momentum.
Crypto analyst Ali Martinez has identified a critical historical trend in Bitcoin’s price movement. According to Martinez, Bitcoin often tests the 200-week moving average (MA) after falling below its 50-week MA.
Martinez pointed out that the 50-week moving average (MA) is currently at $75,500, while the 200-week MA sits at $46,000. If Bitcoin’s price fails to regain support above the 50-week MA, there’s a greater chance of it falling to sub-$50,000 levels.
On the other hand, the analyst also cited that Bitcoin is forming an inverse head-and-shoulders pattern, with a move above $84,000 potentially setting the stage for a rally towards $91,000.
With BTC being range-bound for quite some time, investors need to wait for a confirmed breakout in either direction to set the tone for the next directional move.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
