- Bitcoin forms a rare MVRV golden cross, signaling the potential start of a new bull rally.
- Over 85% of BTC supply is in profit as price holds near $95,000 with bullish sentiment rising.
- $630M in shorts risk liquidation if BTC breaks $98K, with strong support holding at $93K.
Bitcoin is holding steady near the $95,000 mark as analysts focus on a rare technical formation. A golden cross between the MVRV Ratio and its 365-day simple moving average (SMA) may suggest the start of a new bull rally for $BTC. This signal has gained attention due to its historical relevance in previous cycles.
Golden Cross in MVRV Ratio Adds to Bullish Sentiment
According to an observation by analyst Ali Martinez, a golden cross has formed between Bitcoin’s MVRV Ratio and its 365-day SMA. This crossover has appeared just before major rallies in the past, making it a point of interest for traders and institutions alike.
The MVRV Ratio compares market value to realized value and is used to assess profitability among holders. The current signal suggests that long-term holders are returning to profitability, which historically aligns with bullish trends. Martinez stated, “A golden cross between the MVRV Ratio and its 365-day SMA could mark the start of a new bull rally for Bitcoin.”
Market data shows that over 85% of Bitcoin’s circulating supply is currently in profit, according to CryptoQuant contributor Darkfost. This indicates growing confidence among holders as Bitcoin attempts to break above the $95,500 resistance level.
Volume Declines While Technical Setup Remains Intact
Bitcoin’s daily trading volume dropped nearly 15% in the last 24 hours, and the price faced rejection near $95,500. Over $180 million was liquidated across crypto markets, including $120 million in long positions.
More than $630 million in Bitcoin shorts could face liquidation if price moves above $98,000. According to analyst Greg Miller, Bitcoin’s price setup remains strong within an ascending triangle pattern.
“$98,300 might be coming sooner than we think,” he noted, referencing the structure’s bullish outlook. With support holding at $93,000 and sentiment in the “Greed” zone, Bitcoin may continue consolidating until macroeconomic data or volume drives a breakout.
