Despite a recent price surge, Bitcoin's market momentum suggests potential for further growth. Analytical data from CryptoQuant and Glassnode indicate that Bitcoin remains undervalued and is far from reaching its market top. Decreasing selling pressure and increasing market confidence strengthen the case for a continued upward rally.
Bitcoin ( BTC ) has experienced a notable price surge, rising by 2.57% to approximately $97,500 at the time of writing. This upward movement, however, is not entirely reflected in market momentum , which has declined by 23.23% during the same period. Despite this discrepancy, a comprehensive market analysis based on historical trends suggests the potential for further growth in BTC 's price. This implies that Bitcoin could still reach a new all-time high in the coming weeks.
Data from CryptoQuant's Market Position and Supply Pressure metrics indicates that Bitcoin may be undervalued. This assessment is based on the Margin of Safety (MoS) and Market Sentiment Ratio (MSR) indicators. The MoS evaluates whether BTC is overvalued or oversold relative to a critical baseline. When the MoS trends above this line, it indicates overvaluation, whereas a position below suggests the asset is undervalued. Currently, the MoS (represented by the purple cloud) is trending below the baseline, valued near the $90,000-zone (baseline). This implies that BTC is currently in an oversold position - a sign that a rally may be imminent. Similarly, the Market Sentiment Ratio (MSR) measures the level of optimism or pessimism in the market by comparing its value to the yearly Simple Moving Average (SMA). At the time of writing, it had a reading of 1.4. A value above the SMA indicates prevailing optimism, while a value below reflects market pessimism. Data at press time revealed that the MSR was below the yearly SMA - a sign of pessimistic sentiment. Historically, as indicated by green dots on CryptoQuant's chart, whenever the MoS falls below the baseline and the MSR trends below the yearly SMA, these conditions present a strong buying opportunity. The same pattern seems to be forming now in the market - a sign that BTC could be ready for another uptrend. Data from Glassnode's Total Supply of Bitcoin in Profit, a key metric for identifying BTC's cyclical tops and bottoms, suggests that Bitcoin is still far from reaching its market top. If BTC touches this red trendline, it would mean that a majority of the holders are in profit. Historically, such scenarios have triggered major market sell-offs. Especially as traders begin to realize profits, exerting downward pressure on the price. Right now, BTC remains well above this trendline, indicating a favorable position for further rallying as addresses holding this supply are incentivized to continue holding in anticipation of higher gains. There has been a consistent decline in exchange netflow from January 12th - dropping significantly from approximately 3,431.69 BTC to just 137 BTC. A sustained decline in netflow means reduced selling pressure, as more investors move their BTC off exchanges into private wallets. This behavior can be interpreted to mean growing conviction among holders. If the exchange netflow turns negative, it would mean that spot traders are increasingly confident - a sentiment that historically correlates with an upward price movement. Simply put, BTC remains in a strong position to sustain its upward rally, supported by diminishing selling pressure and increasing market confidence
Bitcoin BTC Price Rally Market Momentum Cryptoquant Glassnode Undervalued Market Top Selling Pressure Market Confidence
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