Five reasons why the price of bitcoin will soon rise again

The price movement over the past few days seems to show the end of this bullish rally. There are several parameters that support the argument that bitcoin is about to hit bottom. Experts suggest that BTC is undervalued at the moment, indicating a price spike in the near future.

Why is bitcoin’s bottom near the current range?

As the macroeconomic scenario continues to be unfavorable for bitcoin, the leading crypto asset is trading at undervalued levels. Meanwhile, about five technical indicators are pointing towards the assertion that Bitcoin has yet to realize its potential. The total supply of BTC in profit fell sharply last week, which currently accounts for 56% of the total supply. This is important for tracking the proportion of traders with unrealized profits and losses.

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The price of bitcoin stands at $21,612, down 0.78% over the past 24 hours, according to CoinMarketCap. On a weekly basis, BTC is up 0.56 percent. In addition, BTC holders are currently experiencing a 1% loss, as confirmed by the net unrealized profit/loss (NUPL) analysis. NUPL is the difference between unrealized profit and unrealized loss to determine if the network is currently in a profit or loss state.

The bitcoin holding community is currently in a loss

In addition, long-term bitcoin holders are currently spending their coins at a 44% loss. Puell’s multiple, which measures the growth of miners’ income over a year, indicates that bitcoin is currently in the accumulation zone.

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According to data from Crypto Quant, the MVRV ratio is again below 1, indicating that the average bitcoin holder is at a loss. The market value to realized value (MVRV) ratio is a ratio of an asset’s market capitalization to its realized capitalization. A comparison of these metrics can help understand when the price is above or below fair value.

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