After a challenging recovery from the dive below $39,000 in January, Bitcoin price seems to have left the bearish days behind and is ready to embrace the upcoming halving event by treating investors to a spectacular trajectory.

Although BTC traded close to $42,000 earlier this week, it climbed above $47,000 on Friday, solidifying positive sentiment across the market, even for altcoins like Ethereum (ETH), Solana (SOL), and Cardano (ADA).

Is This The Beginning Of Bitcoin Price Pre-Halving Rally?”

Bitcoin is getting ready for a pre-halving rally, according to many experts. They think that the dip from $49,000 to below $39,000 was a chance to buy low before the price skyrockets. But what do the on-chain indicators, such as the Market Value Realised Value (MVRV), tell us?

According to Glassnode, a blockchain data analytics platform, “the challenging recovery since the FTX collapse,” is over with the MVRV ratio rising to 2.06. This region represents a high-risk regime usually “seen during the early stages of bull markets.” Long-term investors start to see meaningful profitability, as the MVRV ratio shows.

After the challenging recovery since the FTX collapse, this indicator has advanced to 2.06, entering the High Riskregime.

These levels are typically seen during the early stages of bull markets, as long-term investors return to a relatively meaningful level of profitability. pic.twitter.com/XMSjJjUc1z

— glassnode (@glassnode) February 9, 2024

Renowned analyst and trader Rekt Capital outlines the phases of Bitcoin price around the halving. As BTC ascends towards $50,000, it is believed to be playing out a pre-halving rally.

The next phase will see a pre-halving retrace followed by a post-halving re-accumulation and lastly a post-halving parabolic uptrend.

#BTC

Bitcoin is transitioning into its Pre-Halving Rally phase a few days earlier than history suggests

However, this coming Monday we will have full confirmation of the transition

In any case, Bitcoin is right on schedule, if not slightly ahead of it$BTC #Crypto #Bitcoin

— Rekt Capital (@rektcapital) February 9, 2024

Echoing similar sentiments the founder of MN Trading Consultancy, Michaël van de Poppe. The widely followed trader says that the range is clear and that the region between $48,000 and $50,000 will be important in the coming days. Poppe foresees Bitcoin price rising to a higher range between $53,000 and $55,000 pre-halving.

#Bitcoin above $47,000.

The range is still clear, $48,000-50,000 as a potential high for the upcoming period, but given the recent strength, we might see $53,000-55,000 pre-halving.

— Michaël van de Poppe (@CryptoMichNL) February 9, 2024

Bitcoin is heading for a halving in April. This is a key event that keeps BTC’s inflation rate low by cutting the rewards for miners in half. This reduces the supply of new coins and makes them more scarce. If the demand for Bitcoin stays high or grows, this could trigger a huge price surge.

Bitcoin Price Prediction: Assessing BTC’s Technical Structure

Bitcoin sits above $47,000 during the American session on Friday. On the upside, bulls face resistance in the yellow band which they must defeat to extend the leg to $50,000.

Bitcoin price chart | Tradingview

Various indicators back the bullish theory targeting highs above $50,000 indulging the Super Trend as it trails BTC providing support. Moving averages like the 20-week Exponential Moving Average (EMA) and the 50 EMA are also in line catching up to the price and validating the uptrend.

Traders would be watching Bitcoin’s behavior at $47,000. Respect this support, and BTC continues to move higher toward $50,000. On the other hand, sliding below the same level could spread fear of another dip and contribute to the selling pressure perhaps forcing Bitcoin to retest support at $44,000 before it rebounds again.

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The post Bitcoin Price: What The MVRV Tells Us About BTC Price Trend Above $47,000 appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am