Bitcoin (BTC) surged towards $71,000 at the start of the week, marking a fresh low and reviving market optimism. Investors now eye the possibility of surpassing the all-time high of $74,000. Several on-chain indicators suggest that this bullish trend may persist, propelling BTC to unprecedented levels. Here, we explore three critical indicators supporting this ongoing upward momentum.
Why Are Bitcoin Whales Accumulating?
Data from CryptoQuant shows that institutional investors have resumed their accumulation phase over the last two weeks, following a significant distribution period in March. This renewed buying activity is already impacting Bitcoin’s price and is expected to fortify further in the upcoming weeks. Should this accumulation persist, Bitcoin could enter a new price discovery phase, potentially reaching new all-time highs.
What Does the NVT Golden Cross Indicate?
CryptoQuant’s NVT Golden Cross (NVT GC) indicator has consistently marked local bottoms within the 0.00 to -1.00 range since February 2024. Currently standing at 0.14 points, the indicator suggests a potential local bottom in the $69,000 to $70,000 range. Additionally, a recent $886.6 million inflow into US spot Bitcoin ETFs bolsters this prediction. Experts suggest closely monitoring the NVT GC indicator as it nears the critical white zone, signaling potential further bullish momentum.
Bitcoin Volatility Index and Adjusted MVRV
The Bitcoin Volatility Index (SMA-30d) is experiencing a significant decline, indicating a potential slowdown in Bitcoin’s price volatility. Historical data reveals only four such instances of low volatility in the past six years. Although this suggests stability, some analysts remain cautious, proposing it might precede major market movements. Furthermore, the Adjusted MVRV (30DMA/365DMA) metric draws parallels between the current market trajectory and the 2015-2018 period, indicating a steady upward path devoid of previous cycle turbulence. Bitcoin appears to be smoothly past the halfway point of its current bull market.
Key Takeaways
Actionable Insights:
- Institutional accumulation signals potential new all-time highs for Bitcoin.
- NVT Golden Cross serves as a reliable indicator for identifying local bottoms.
- Low Bitcoin volatility may precede significant market movements, warranting cautious monitoring.
- Adjusted MVRV suggests a steady bull market progression, similar to the 2015-2018 period.
- Rising open interest in Bitcoin derivatives indicates strong market interest and potential for substantial price movements.
These indicators collectively paint a promising picture for Bitcoin’s future trajectory, suggesting that the cryptocurrency could reach new heights driven by solid fundamental metrics and increasing institutional interest.