Bitcoin MVRV Approaches Key Breakout Level—Is a Price Surge on the Horizon?

During the previous trading week, Bitcoin experienced a notable price recovery, striving to regain the $95,000 level. Yet, in the past 24 hours, bullish momentum appears to have slowed down, leading to a slight pullback and a phase of price stabilization.

There are ongoing discussions regarding Bitcoin’s capability to maintain its current upward trend. Prominent crypto analyst Burak Kesmeci has provided insights into key factors that may influence BTC’s price movements in the near term.

Bitcoin MVRV Encounters Resistance at 365 SMA

Kesmeci mentioned in his recent post that the Bitcoin MVRV is encountering significant resistance at the 365-day simple moving average (365SMA). He elaborates that developments surrounding this scenario could significantly impact Bitcoin’s medium-term trajectory.

The MVRV ratio, which signifies the relationship between Market Value and Realized Value, is a critical on-chain indicator that assesses whether Bitcoin’s trading price is overvalued or undervalued compared to its realized price. While the MVRV typically serves to indicate profitability, it can also highlight different market phases, including price peaks or troughs, and discern current price trends.

Moreover, the MVRV 365SMA, which averages the MVRV ratios from the previous 365 days, serves as a vital benchmark for potential mid-term reversals. Generally, if the MVRV falls below the 365SMA, it indicates a bearish market sentiment, whereas a rise above this average is seen as a bullish signal.

Following the latest market changes, Bitcoin’s MVRV is at 2.13, just under the 365SMA of 2.14. For a confirmation of a long-term bullish outlook despite recent climbs, a positive crossover between the MVRV and its 365SMA is crucial, signaling a possible mid-term trend shift after an extended correction phase anticipated in early 2025.

Bitcoin Network Fees Rise by 42%

In additional news, on-chain analytics company IntoTheBlock has reported a 42% increase in Bitcoin network fees over the past week. In this timeframe, traders incurred $4.03 million in transaction fees, indicating a robust level of network activity.

At the same time, cryptocurrency exchanges noted net withdrawals amounting to $356 million. Although this figure is significantly lower than the $1.3 billion seen the previous week, it suggests that numerous investors are choosing to retain their assets. The rise in network activity, coupled with persistent outflows from exchanges, reflects strong underlying demand and a positive outlook in the Bitcoin ecosystem.

As of the latest update, Bitcoin is trading at $94,233, having experienced a 0.78% decline in the past day. Over longer timeframes, the leading cryptocurrency has seen gains of 11.27% and 8.59% over the past week and month, respectively.