{"id":14493,"date":"2024-10-17T10:39:59","date_gmt":"2024-10-17T10:39:59","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=14493"},"modified":"2024-10-17T10:39:59","modified_gmt":"2024-10-17T10:39:59","slug":"this-declining-major-bitcoin-metric-hints-at-upcoming-btc-bull-run-details","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=14493","title":{"rendered":"This Declining Major Bitcoin Metric Hints at Upcoming BTC Bull Run: Details"},"content":{"rendered":"

TL;DR<\/strong><\/p>\n

Bitcoin soared to around $67,400, with some metrics suggesting potential for further gains.
\nHowever, some bearish signals, such as an overvalued MVRV ratio and overbought RSI, indicate a possible price pullback.<\/p>\n

<\/a><\/span><\/h2>\n

BTC Price Explosion Incoming?<\/h2>\n

The <\/span>price of the leading cryptocurrency<\/span> surged by over eight grand in the past week, currently trading at around $67,400 (per CoinGecko\u2019s data).<\/span> The rally fueled <\/span>huge<\/span> enthusiasm among BTC proponents, many of whom assumed that \u201cUptober\u201d <\/span>was<\/span> finally here.<\/span><\/p>\n

<\/a>BTC Price, Source: CoinGecko<\/p>\n

Some important indicators signal that the asset has yet to witness substantial gains. One example is the BTC supply stored on exchanges, which, according to X user Ali Martinez, has <\/span>tumbled<\/span><\/a> to a five-year low.\u00a0<\/span><\/p>\n

Such a development <\/span>is generally considered<\/span> bullish since it suggests that holders might be shifting from centralized platforms to self-custody methods (which reduces the immediate selling pressure). Moreover, fundamental economic principles dictate that BTC\u2019s price should head north if demand remains constant or increases while the available supply drops.<\/span><\/p>\n

A metric hinting that BTC could be ahead of a more volatile period is the growing Open Interest.<\/span>\u00a0As <\/span>CryptoPotato<\/span><\/em> reported<\/span><\/a> on October 15, the figure reached an all-time high of $19.8 billion. It kept rising in the following hours, <\/span>surpassing<\/span><\/a> $20 billion on October 16 (per CryptoQuant\u2019s data).<\/span><\/p>\n

The rise of OI <\/span>is combined<\/span> with BTC funding rates that have hit their highest positive levels in the past two months. <\/span>This<\/span> indicates that most of the open interest <\/span>is comprised<\/span> of long positions, which, combined with the growing demand reported by CryptoQuant\u2019s CEO, reaffirms the narrative about a potential rally.\u00a0<\/span><\/p>\n

Some Bearish Factors<\/span><\/h2>\n

Contrary to the <\/span>aforementioned indicators<\/span> suggesting that the primary cryptocurrency could experience another bullish momentum soon, some hint at the opposite scenario.<\/span><\/p>\n

BTC\u2019s MVRV (Market Value to Realized Value)<\/span>, for instance,<\/span> has been gradually increasing in the past week, <\/span>crossing<\/span><\/a> the critical ratio of 2.<\/span> Readings above that mark typically show that the asset could be overvalued and poised for a pullback.<\/span><\/p>\n

The Relative Strength Index (RSI) is next on the list. This technical analysis tool measures the speed and change of price movements and is commonly used to identify overbought or oversold conditions. When the ratio is above 70, it indicates that BTC is in overbought territory, meaning a correction could be imminent. The RSI has been <\/span>hovering<\/span><\/a> above that level in the past three days.\u00a0<\/span><\/p>\n

The post This Declining Major Bitcoin Metric Hints at Upcoming BTC Bull Run: Details<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

TL;DR Bitcoin soared to around $67,400, with some metrics suggesting potential for further gains. However, some bearish signals, such as an overvalued MVRV ratio and overbought RSI, indicate a possible price pullback. BTC Price Explosion Incoming? The price of the leading cryptocurrency surged by over eight grand in the past week, currently trading at around […]<\/p>\n","protected":false},"author":0,"featured_media":14494,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-14493","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/14493"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14493"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/14493\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/14494"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}