Following the approval of the spot Bitcoin Exchange Traded Fund (ETF) in the United States by the Security and Exchange Commission (SEC), Bitcoin experienced a downside momentum of over 20% in 12 days until January 23, 2024. However, after this downward trend, Bitcoin experienced an upside momentum of 11% starting from January 24, 2024. During this period, BTC’s price moved in a way that its MVRV ratio fell below its 90-day average, signaling a bullish momentum.
Bitcoin MVRV momentum chart signals bullish momentum
According to data from on-chain analytic firm Glassnode, whenever the Bitcoin MVRV ratio fell below its 90-day average, a significant upside momentum in the market followed. This pattern appeared 4 times on the Bitcoin MVRV momentum chart in 2023 alone, and with a 100% success rate, the BTC price experienced upside momentum. This same info is also shared by a prominent analyst Ali on X.
Every time the Currently, Bitcoin is trading near $43,300, and in the last 24 hours, it experienced a slight 0.50% downside momentum. Looking at Bitcoin over a longer period, in the last 7 trading days, BTC experienced over 8% upside momentum, while in the 30 trading days following the Bitcoin ETF approval and subsequent market fall, and the recent bullish momentum, BTC has experienced over 2% upside momentum.
Bitcoin technical analysis and potential to hit $46,000 level
According to expert technical analysis, Bitcoin on a daily time frame is at the line of an inverted Head and Shoulder bullish pattern and is also attempting to break this neckline. However, in the 4-hour time frame, alongside its bullish price action pattern, Bitcoin is forming a bullish golden crossover.
Considering all the on-chain data, price action patterns, and technical indicators, Bitcoin appears bullish. Traders or investors need to understand that if the Bitcoin price closes its 4-hour candle above $44,000, there is an 80% chance that Bitcoin will initially reach $46,000 and later $48,000. However, this is a technical outlook and not a price prediction.