Bitcoin Eyes Bullish Breakout as MVRV Ratio Nears Golden Cross

Bitcoin, the world’s leading cryptocurrency by market cap, may be on the verge of a significant breakout as a key technical indicator flashes bullish. According to crypto analyst Ali, Bitcoin’s Market Value to Realized Value (MVRV) Ratio is approaching a golden cross with its 30-day simple moving average (SMA)—a pattern that often signals the beginning of upward momentum.

The MVRV Ratio, which compares Bitcoin’s current market value to the average price at which coins were last moved, is a reliable metric to assess overvaluation or undervaluation. A golden cross between the MVRV and its 30-day SMA suggests that BTC holders may be shifting into profitable territory, potentially attracting fresh buying interest.

Historically, golden crosses between short- and long-term moving averages have preceded strong bullish trends in crypto markets. If confirmed, this signal could indicate that Bitcoin is poised for its next leg higher. However, traders should remain cautious as no indicator guarantees performance, especially in volatile conditions.

Currently, Bitcoin is trading around $108,179, showing modest 24-hour gains of 0.8% while staying within a consolidation range of $100,000 to $110,000. Despite reaching this range, signs of weakening on-chain activity and reduced profitability hint at a lack of strong market momentum.

This period of consolidation reflects broader market hesitation as investors await new catalysts. For Bitcoin to break out to new all-time highs, a recovery in both profitability metrics and network activity will likely be necessary. Until then, the market appears to be digesting earlier gains, preparing for a potential shift in trend driven by technical and fundamental signals.