Bitcoin is currently trading around $94,000, recording a slight decline over the past 24 hours.
Data from CoinGlass shows that the MVRV-Z has dropped to 2.84, down from a high of 3.3 last week. Traditionally, an MVRV-Z below 3.7 is considered a sign that Bitcoin is undervalued. During the most recent major correction in March this year, Bitcoin’s MVRV was 3.03, and during the previous correction in January 2021, it was 7.
These figures suggest that Bitcoin is likely to rebound strongly in the coming weeks. According to the “cup and handle” pattern, Bitcoin’s price could rise to $122,000 in the current bull cycle.
Additionally, data from CryptoQuant shows that outflows from exchanges have exceeded $2.5 billion in the past week.
When outflows from exchanges spike, this often indicates a shift to storing assets in personal wallets instead of continuing to trade or sell.
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“If the outflow of Bitcoin from exchanges continues, the selling pressure in the market could decrease significantly. When the amount of Bitcoin on exchanges decreases while demand remains stable or increases, the price of Bitcoin is likely to increase sharply,” according to experts.
Additionally, the funding rate of Bitcoin in the Futures market is currently at 0.0081. This positive funding rate indicates that long positions are paying for short positions, reflecting the current bullish market sentiment.
