Bitcoin (BTC) underwent a strong recovery last weekend, reaching $66,000 after facing some selling pressure the previous week. Analysts are carefully monitoring to discern the precise momentum of Bitcoin’s price in the coming days. However, the Bitcoin supply situation still remains profitable, which is exerting upward pressure on its trend.
Bitcoin (BTC) Yield Supply
Recent online data reports a Bitcoin supply ratio with profit at 88.8%. While this number remains relatively high, it has significantly decreased from the peak earlier this year.
As of February 7, 2024, when Bitcoin hit $44,000, that was the last time this ratio reached its highest point. Analysts are closely watching to see if Bitcoin can sustain its current upward trajectory or if the market will need more time to recover.
Some experts like Nebraskagooner suggest that if Bitcoin rises to $75,000 from its current position, this could indicate that the market has bottomed out. Conversely, if the price drops below $58,000, it could signal that the market is still unstable.
Great buying opportunity
Furthermore, Bitcoin’s MVRV ratio indicates a prime buying opportunity at this time. According to cryptocurrency expert Ali Martinez, whenever Bitcoin’s MVRV ratio drops below the 90-day average since November 2022, it suggests a favorable buying opportunity for BTC with an average profit of 67% historically! This pattern is repeating once again, implying that now might be the ideal time to buy BTC.
Related: Signs Pointing to Altcoin Season Approaching?
Ali Martinez also emphasizes Bitcoin’s relationship with the Global Liquidity Index, a strong correlation that has been maintained until 2024. However, this relationship has been disrupted this year. Martinez highlights the need to boost liquidity ahead of the U.S. presidential election to maintain Bitcoin’s upward price trend. Despite transaction fees for Bitcoin mining companies skyrocketing to $1,258 per BTC, the number of new BTC addresses registered has decreased to just 260,838. The recent increase in Bitcoin transaction fees is mainly attributed to the Runes protocol.
