Bitcoin briefly surpassed the psychological barrier of $70,000 before sustaining a correction and falling close to $68,000. While a breakout does not appear to transpire in the near term, the data suggest that the bull market is still not over.
In fact, bitcoin is potentially primed for more gains, according to the latest analysis by CryptoQuant.
Bitcoin Resurgence in June
Upon examining the MVRV ratio, CryptoQuant’s report determined that the current bull market is far from over.
Historically, the Market Value to Realized Value (MVRV) ratio, a key metric, peaked at 4.83 and 3.97 in past bull markets. Currently, the MVRV ratio has only reached 2.78, indicating that BTC has not yet entered the overvalued zone. This is indicative of the world’s leading cryptocurrency’s potential for further price increases.
After an extended period of sideways movement and adjustment lasting over two months since bitcoin entered the overheated section in March 2024, CryptoQuant anticipates a likely upward trend starting as early as June.
The asset surged by approximately 152% over the past year. More than 60% of growth in 2024 alone has been driven by the approval of spot Bitcoin ETFs in January and the recent halving event.
Stable Price Range for Bitcoin
All the eyes are on the Federal Reserve’s prospects for rate cuts. Market participants believe that such actions could trigger a stock market rally. This expectation extends to bitcoin as well, which behaves like a speculative asset that tends to rise when borrowing costs are low.
The record high BTC reached in 2021 was primarily due to ultra-low interest rates, which later reversed as the Fed began tightening its monetary policy.
A similar sentiment was echoed by Galaxy CEO Mike Novogratz, who, in a recent interview, talked about the impact of the recent halving and the massive adoption of ETFs on bitcoin’s price trajectory in the first quarter of the year, adding that the market’s attention has shifted to the Federal Reserve’s actions regarding interest rates.
Novogratz also pointed out that until the Fed lowers short-term interest rates, bitcoin is expected to trade within a range of $55,000 to $73,000, indicating a period of relative stability influenced by the broader economic policies.
The post Here’s When Investors Can Expect Bitcoin’s Next Big Move: CryptoQuant appeared first on CryptoPotato.
