Has Bitcoin reached its low point?  88% of the offer already profitable

With the price of bitcoin recently surpassing $65,000, many investors believe the bottom may already be reached. Technical indicators like the MVRV ratio are giving a positive buy signal, hinting at potential gains of 67%.

A significant part of the BTC supply still in profit

The latest on-chain data reveals that 88.8% of the total bitcoin supply is currently in positive territory. Although lower than the highs reached earlier in the year, this percentage remains high from a historical perspective. The last time such a level was observed was on February 7, 2024, when BTC was trading around $44,000.

This significant proportion of holders in profit could generate some selling pressure and moderate the upward momentum in the short term. However, many analysts remain convinced that if bitcoin manages to hold above $65,000, the positive momentum could continue and propel the price to new highs.

If the price breaks sustainably above $75k, it will likely confirm that the low is behind us. Conversely, a return below $58k would mean that the floor has not yet been reached “, comments the Nebraskagooner trader.

Promising technical signals despite uncertainties

Despite these uncertainties, bitcoin's MVRV (Market-Value-to-Realized-Value) ratio appears to indicate an attractive buying window. This indicator makes it possible to assess whether the price is overvalued or undervalued compared to its “fair value”.

According to analyst Ali Martinez, when this ratio crosses below its 90-day moving average, it has historically provided excellent buying opportunities, with an average gain of 67% since November 2022. This pattern has just appeared again, suggesting that now is a good time to accumulate BTC.

Mr. Martinez also highlights a recent decorrelation between bitcoin and the global liquidity index. He believes that increased liquidity ahead of the US elections will be necessary to support the upward momentum. However, with transaction fees rising and address creation falling, mixed signals persist

Although the technical and on-chain configuration of bitcoin suggests promising upside potential, caution remains in order in the short term. The high level of profitability of the offer could trigger profit taking. The next few weeks promise to be decisive in confirming a lasting turnaround in the market.

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