Metrics Reveal Bitcoin Is Still Undervalued – MVRV Z-Score Signals Room for Growth

Metrics Reveal Bitcoin Is Still Undervalued – MVRV Z-Score Signals Room for Growth
фото показано с : bitcoinist.com

2025-1-18 05:30

Bitcoin has surged past the $102,000 mark, signaling a strong bullish trend as anticipation builds ahead of President-elect Donald Trump’s inauguration day. With his pro-crypto stance widely known, many analysts believe Trump’s presidency could usher in a new era of growth for BTC and the broader cryptocurrency market. This optimism is fueling significant interest among investors, who see the potential for explosive market performance in the coming months.

Top analyst Axel Adler recently shared his insights, highlighting that Bitcoin’s market dynamics are firmly in a growth phase. Adler emphasized that BTC’s price action reflects heightened confidence, with institutional and retail investors driving demand as regulatory clarity is expected to improve under Trump’s administration. The $102,000 level marks a pivotal milestone for BTC, showcasing its resilience and increasing appeal as a digital asset.

As inauguration day approaches, market participants closely monitor Bitcoin’s next moves, with expectations of continued upward momentum. Analysts predict that Trump’s pro-crypto policies could accelerate adoption, solidify Bitcoin’s role as a hedge against inflation, and trigger a broader rally across the crypto market. With the spotlight on BTC, this bullish momentum could set the tone for a transformative period in the digital asset space.

Bitcoin Prepares For A Run

Bitcoin is approaching a critical juncture as it eyes a breakout above its local high. If this level is successfully cleared, analysts anticipate a massive rally that could propel BTC into price discovery, where new all-time highs may be set in rapid succession. Investors are particularly optimistic, given that the post-halving year has historically delivered the highest returns for BTC, making this phase crucial for long-term growth.

Top analyst Axel Adler from CryptoQuant recently provided key insights into Bitcoin’s current market conditions. Sharing his analysis on X, Adler noted that the BTC market remains firmly in a growth phase, supported by the MVRV Z-Score smoothed with a 180-day moving average. This metric, often used to evaluate market conditions, indicates that Bitcoin’s price has not yet reached extreme overbought levels, leaving room for significant upward movement.

As Bitcoin inches closer to reclaiming its all-time highs, the broader crypto market is also showing signs of growth, fueled by increasing investor confidence. Many in the space are eagerly awaiting the inauguration of Donald Trump, who is expected to bring pro-crypto policies that could further enhance Bitcoin’s adoption and price performance.

With the stars aligning—historical trends, favorable metrics, and supportive policies—Bitcoin appears poised for a breakout. If it clears this local high and enters price discovery, the next rally could mark a transformative moment in the cryptocurrency’s ongoing evolution. Investors are watching closely, knowing this could be the beginning of an unprecedented surge in the digital asset’s history.

BTC Testing Critical Supply Zone

Bitcoin (BTC) is currently trading at $102,500, testing a key resistance level set on January 6. This local high has become a critical battleground for bulls and bears, with a decisive break above it likely to fuel significant bullish momentum. Analysts agree that reclaiming and holding this level is essential to unlocking further upside potential.

The next major hurdle lies at $103,600, a crucial point that must be surpassed to solidify Bitcoin’s path toward its all-time high (ATH). If BTC clears this resistance, it would mark a critical step toward entering price discovery, a phase where the asset explores uncharted territory with no historical ceiling to limit growth. Such a development would likely trigger heightened market enthusiasm and increased investor activity.

Market sentiment remains optimistic as BTC maintains its upward trajectory, supported by strong demand and favorable macroeconomic conditions. Many traders are positioning themselves for a breakout, anticipating that Bitcoin’s ability to reclaim these levels will pave the way for a new era of price appreciation.

If bulls succeed in conquering the $103,600 mark, BTC could soon embark on a rally that sets new benchmarks and reinforces its dominance in the cryptocurrency market. The coming days will be pivotal for Bitcoin’s next major move.

Featured image from Dall-E, chart from TradingView

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