Bitcoin failed to maintain momentum on Friday as the BTC price got closer to the $64,000 range. At this level, BTC got rejected and corrected to just below $63,000.
Bitcoin’s price failed to maintain momentum on Friday as it approached the $64,000 level, facing a setback in its recent rally.
After the Federal Reserve announced a 50 basis point cut to its benchmark interest rate on Wednesday—the first reduction in over four years—Bitcoin’s price rallied from around $58,000 to levels slightly below $64,000.
However, the cryptocurrency encountered resistance at this level and corrected to just below $63,000 during Friday’s trading session. But despite this pullback, overall sentiment in the market remained positive.
Crypto trader Ali highlighted the MVRV Momentum indicator, which offers insights into potential trend shifts, in his analysis.
The MVRV (Market Value to Realized Value) Momentum indicator is a powerful tool for analyzing Bitcoin’s market dynamics. It combines a few key elements to provide a detailed view of price action and market sentiment.
On his chart, Ali plotted Bitcoin’s MVRV Momentum over a 90-day period, which includes Bitcoin’s price in USD, the MVRV ratio, and a 90-day moving average of the MVRV ratio. The chart also features a color-coded background indicating positive (green) or negative (red) momentum.
One of the most important aspects of the chart is the series of crossovers between the MVRV ratio and its 90-day moving average. These crossovers often signal potential shifts in market momentum.
For example, in late April 2024, the MVRV ratio peaked above the moving average before sharply dropping below it, signaling a shift from positive to negative momentum.
As of September 2024, the MVRV ratio is once again testing the 90-day moving average, presenting a critical inflection point for Bitcoin’s price action. If the MVRV ratio can break and sustain a position above the moving average, it could indicate the return of bullish momentum in the market.
Read also: MicroStrategy Goes On a Massive Bitcoin Buying Spree – Here’s Their Profit At Current BTC Price
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