Bitcoin price appears to be gaining traction after bouncing off the $76,500 level, with technical readings and on-chain metrics hinting that the cryptocurrency may be getting ready for yet another push higher.
Bitcoin Price Signals Bullish Breakout
This latest development follows the recent support received by Bitcoin near the lower end of its range. This was highlighted by the crypto analyst Wealthmanager on September 14, when BTC managed to bounce back from around $76,500 and also managed to regain the resistance level of $77,500.
The possibility of staying above $77,500 can provide the scope for Bitcoin to break through the next resistance level of $80,000. This setup looks especially significant considering the fact that despite the negative sentiment in the market, Bitcoin is structurally strong.
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Bitcoin Recovery Faces Key Resistance
The $77,500 level has emerged as an essential short-term price zone for Bitcoin. Breaking out and holding above the said level will boost Bitcoin’s recovery from its recent range bottom and make $80,000 an important target again.
Bitcoin is finding it tough to hold on to gains above $80,000, making it a crucial zone for the bulls. A breach of this zone may alter the short-term structure and perhaps see a new push towards resistance levels.
Bitcoin price would go towards the area of $76,500 after dropping to $77,500, while a larger decline may reveal support further down. BTC last traded in the range of $76,400-$76,700.
At the time of writing, Bitcoin is trading at $77,612, up 1.11% over the last 24 hours. BTC has a 24-hour trading volume of $112.56 billion and a market capitalization of approximately $1.56 trillion.
Bitcoin MVRV Signal Adds to Bullish Case
Apart from the technology setup, there are other developments grabbing attention.
Another crypto analyst, CryptoGoos, highlighted a possible shift in the on-chain momentum for Bitcoin. This is based on the view that the MVRV Momentum Oscillator is moving above zero.
MVRV measures the market value against the realized Bitcoin price and can thus be used to detect changes in bear or bull markets. A positive momentum may indicate that there is now more BTC in unrealized profits.
According to CryptoGoos, there were other occasions when the signal had been positive, such as 2012, 2016, 2019, and 2023, indicating that there were similar cases at the point of important Bitcoin market developments.
Nevertheless, comparison to historical data does not mean that Bitcoin will behave in a similar fashion in the future. There are many differences between various market cycles that should be taken into account.
What the MVRV Momentum Indicator Means
The MVRV Momentum Oscillator monitors Bitcoin profitability relative to its long-term trend. A positive momentum usually points towards better market conditions, while a negative momentum suggests increased losses that have not been realized yet. The possible break above zero might mean Bitcoin is expanding.
Bitcoin Technical Structure Remains Positive
Bitcoin is currently trading at $77,611 and sitting above the 50-day EMA line at $77,080. Meanwhile, the 100-day EMA is at $73,353, while the 200-day EMA is at $73,028. This means that the overall momentum of the asset will continue to be bullish as long as BTC stays above its moving averages.
In the case of Bollinger Bands, the middle line is currently at $78,444, while the upper band is at $80,970, and the lower one is at $75,919. At the moment, Bitcoin is sitting below the middle line, which indicates some selling pressure. A break higher above the level of $78,444
What Happens Next for Bitcoin Price?
The coming trading sessions may decide if the latest bounce witnessed by the coin turns out to be part of a bigger recovery or not.
The first level of interest is $77,500. Staying above that will sustain the current bullish pattern. Then Bitcoin has to surpass $78,444 before breaking through the $80,000-$80,970 zone.
Breaking above $80,000 will definitely gain more interest, considering the recovery seen from the recent drop.
However, $76,500 and $75,919 should be watched out for. Missing out on both would imply a reduction in the existing pattern, indicating that BTC is not yet ready for further attempts at a breakout.
For now, the price of BTC continues to stay at a significant crossroads. The rebound above $77,500, along with a possible momentum reversal in MVRV, indicates an excuse for bulls to stay optimistic. However, BTC will have to break through the resistance level to claim a new growth phase.
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