Lately, Bitcoin’s price performance has been noteworthy in the world of cryptocurrencies. However, the leading cryptocurrency hasn’t had a smooth start to the new month, leading to discussions about its historical performance in August.
Interestingly, a blockchain company suggests that there might be hope for Bitcoin’s value, hinting at a potential price increase in the coming days.
Bitcoin Price Expected to Rise – What Comes Next
A well-known cryptocurrency analytics platform, Santiment, has indicated that a “relief rally” for BTC’s price could be on the horizon. This positive outlook follows a slow week for Bitcoin and other major cryptocurrencies.
Santiment’s forecast of a price rebound is based on the MVRV (Market Value to Realized Value) ratio, which assesses the average profit/loss of Bitcoin holders within a specific day. This metric helps in determining whether BTC is undervalued or overvalued.
A MVRV ratio above 0% suggests more traders are making a profit and might lead to selling. Conversely, a ratio below 0% indicates that more traders are facing losses and Bitcoin could be undervalued.
As displayed in the chart, Bitcoin’s current MVRV ratio sits below zero at -5.5%, signaling that the cryptocurrency may be undervalued. Historically, low MVRV ratios have presented buying opportunities at price bottoms.
Furthermore, Bitcoin’s price typically rises when the Market Value to Realized Value ratio reaches current levels. For instance, on July 4 and July 25, Bitcoin’s price surged by 7% and 9% respectively when the MVRV ratio dropped to -5%.
Santiment’s post on X suggests that other major cryptocurrencies like ETH, ADA, XRP, DOGE, and LINK are in a similar position to Bitcoin. These assets could also see a price rebound after the MVRV ratio decline.
Bitcoin Price Overview
At present, the price of Bitcoin is approximately $61,300, showing a more than 5% decrease in the last day. Over the past week, Bitcoin’s value has dropped by nearly 10%, according to CoinGecko.
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