A bear market price reversal is expected for bitcoin, although BTC continues to face strong resistance on its 200-week moving average. Right now, the major cryptocurrency is currently trading at $21,700.
Last week, altcoins showed a noticeable increase, in which Ethereum (ETH) was in the lead, having overcome the $ 1,500 mark at the moment.
If bitcoin fails to overcome these levels, we can expect a trend reversal and quick and quick profit taking. Let’s see what indicators of the network can indicate further developments.
The current spot bitcoin price is below its strike price. Statistics show that this was preceded by a period of accumulation in past bearish cycles. Considering previous bearish cycles, the average time spent under the realized price is 197 days. During the 2022 bear market, there are only 35 such days, Glassnode notes.
In addition, Bitcoin’s MVRV ratio has fallen below 1.0, which suggests that the current market price is below the acquisition price of network investors. Conversely, an MVRV ratio above 1.0 indicates market strength.
The MVRV ratio is currently trading at 0.953 (-4.67% unrealized losses), which is not as much as previous bearish cycles at 0.85 (-15% unrealized losses).
This could mean further decline and/or consolidation time with a bottom. At the same time, it could also signal that there is a higher degree of investor support in this bearish cycle,” Glassnode explained.
Popular cryptocurrency market analyst Lark Davis suggests that his follower’s exit positions after recent surges. In his Twitter post, he called a bear market rally in progress, which provides many opportunities to make trades with the utmost caution.