Bitcoin Surges to $99,000 Amid Promising Signals

Bitcoin has surged close to $99,000, posting a gain of around 3% in just yesterday. Over the past few days, Bitcoin has been trading in a narrow range between $92,000 and $98,000. This is seen as a necessary “resting” period after a strong rally, helping the market stabilize before entering a new breakout.

The moving averages continue to maintain a solid “golden cross” pattern, with the MA50 crossing above the MA200, reinforcing the strong bullish signal.

The Bollinger Bands are narrowing, a sign that often foreshadows large price movements. Meanwhile, the Relative Strength Index (RSI) is at 64.76, close to overbought territory but still supporting Bitcoin’s bullish outlook. In addition, the Parabolic SAR dots are below the bullish candle, further highlighting this strong bullish trend.

The MVRV ratio, a measure of market valuation relative to actual price, is currently at nearly 2.7, indicating that Bitcoin is approaching overvaluation territory. This is a warning sign for short-term investors, as historically, when the ratio exceeds 3, there are often profit-taking and sharp price corrections.

Read more: Ethereum Shows Strong Potential to Reach $4,000

Data from CryptoQuant shows that Bitcoin reserves on exchanges continue to decline, which is a positive signal, reflecting the decreasing selling pressure from holders. This trend also shows that investors are moving Bitcoin off exchanges, demonstrating confidence in the long-term potential of this asset.

In addition, the funding rate of Bitcoin on major exchanges has turned positive, reflecting optimistic sentiment and positive expectations from the derivatives market.