BTC price could reach $60K with MVRV metric following previous Bitcoin bull cycles

Bitcoin (BTC) is gearing up for a major surge, displaying classic signals of a bull market from the past, according to the latest research.

On Jan. 30, in a post on X, popular social media commentator Ali observed a familiar pattern in BTC’s price movements, indicating a potential repeat of history.

The current state of the cryptocurrency market is a battleground, with investors eagerly anticipating the outcome. As we enter the era of web 3.0, many are curious about the differences between web 2.0 and web 3.0. Meanwhile, the latest updates on helium and gala crypto continue to draw attention, while others reflect on the evolution of the internet from web 1.0 to web 3.0. As we approach January 2022, the crypto community eagerly awaits the weekly updates and developments in the market.

MVRV Indicates Possible “Extreme Deviation” Ahead

Bitcoin is facing challenges on lower timeframes following the release of spot exchange-traded funds (ETFs), but a broader perspective reveals a positive outlook.

According to Ali, one of several promising indicators is the market value to realized value (MVRV) metric – a traditional tool used by on-chain analytics firm Glassnode to determine Bitcoin’s “fair value.”

When MVRV significantly deviates from the average, it tends to coincide with the end of bull markets and the beginning of bear markets.

Currently, BTC/USD MVRV is hovering around the average level, crossing it from both above and below – a pattern that was observed in 2016 and 2020, right before Bitcoin’s price surged to new all-time highs.

“In past bull markets, Bitcoin has rebounded strongly after touching the average MVRV pricing band,” Ali commented.

On January 31, Cointelegraph reported a decrease in another indicator measuring the supply of stablecoins versus the supply of BTC. The stablecoin supply ratio (SSR) is now 80% lower than its record high from just three months ago, increasing the likelihood of a BTC price increase.

Bitcoin Ichimoku resistance continues to build

In other news, the Ichimoku Cloud analysis continues to support the overall narrative of a bullish Bitcoin market.

Following a pullback from the two-year highs of $49,000 earlier in January, the previously highly optimistic weekly chart setup for Ichimoku also took a hit.

Price dropped below the Tenkan-sen conversion line, which has since acted as a barrier preventing further upward movement, according to data from Cointelegraph Markets Pro and TradingView.

While analyzing the potential for a midterm peak based on Ichimoku, popular trader CryptoCon cautioned that the January high may hold strong.

“Some have claimed that there will be no more corrections with the introduction of ETFs, but that is clearly not the case,” he stated in a recent post for X subscribers on January 13th.

CryptoCon concluded that “until price definitively proves otherwise, this time is not different and we must proceed with caution.”