Two technical indicators now indicate that Bitcoin (BTC) is entering the final phase leading up to the next market rally. However, some conditions must be met before the final big explosion.
Today, Bitcoin dropped below $71,000 following the news of US blockade on the Strait of Hormuz. The fund later resumed trading above $72K after it was clarified that non-Iranian tanks would not be affected, and behind BlackRock’s purchase of $612 million worth of BTC.
Bitcoin technical indicators below
As for the bottom, according to Bitcoin’s Market Value to Realized Value (MVRV) indicator, we haven’t reached it yet, but we’re getting closer.
As the chart below shows, the MVRV has not yet changed, a level that has historically signaled lower prices and continued to rise. The known price of $54,173 puts the current MVRV at 1.35, while the valuation units have previously agreed with MVRVs of 1.0 or below.
Source: Bitbo
Currently, the Bitcoin market capitulation oscillator is showing that we are entering a record low.
Source: Alphafractal
Signs on the chain
The exchange is showing high volume at the moment, with the 30-day volume of Bitcoin on Binance dropping to 2020 lows.
Source: CryptoQuant
Supporting the story is BTC open interest, which is 5.79% in the last 24h, reaching $54.84B at the time of writing, while the liquidations are limited. winner they expect $90.10 million at the same time.
Perfect for the next bull market
JPMorgan now calls the opportunity “buying the dip”, saying that signolds support a V-shaped recovery despite the country’s turmoil. Currently, Strategy continues to buy continuously, now holding 3.7% of all Bitcoin that will exist.
Beyond the end of the US-Iran conflict, Bitcoin retracing its all-time highs for 2021 ($69K) and 2024 ($106K) may also create interest.
Markets now wait patiently to see how this debate evolves and assess what investors will do.
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