Bitcoin had a massive increase on Wednesday when fundamentals flashed green. The apex coin printed a whopping 8%, surging from $74,588 to $83,565.
The massive single-day change was the highest the asset saw in over a month. Nonetheless, it was in reaction to the most anticipated announcement.
Investors feared considerable uncertainties in the US economy as the trade war kicked off. The declaration of tariffs against several countries marked the start of a bearish period for the coin. It has been on the decline with slight increases.
Traders predict that the bull run may resume. The US president announced Wednesday that he is pausing the “reciprocal” levies on over 75 countries except China. Several sectors have seen significant improvement since the announcement. The crypto market is not exempt, as the global cryptocurrency market cap is above $2.70 trillion.
The 90-day pause saw investors loosen their fear, flooding the market with liquidity. Several indicators point to a growing number of buyers at the time of writing. Data from Santiment shows an increase in big players; the whales and sharks have significantly increased.
The firm posted the above image a few hours ago. Big addresses grew by 132 in the last two days, the highest since February. The growth indicates notable buying pressure over the previous three days. It is worth noting that the increase was consistent amid the slight decline, pointing to confidence in Bitcoin’s long-term prospects.
MVRV Z-Score Remains Low
Data from MacroMicro shows that BTC is slightly undervalued. Its Bitcoin-MVRV Z-Score is at 1.71. Although below 2, it shows a notable recovery from 1.43, the lowest in the last six months. The metric is seeing a consistent increase in relation to the current price, indicating that more traders are holding.
CryptoQuant shows significant buying action on the derivative market as the Taker buy-sell ratio is above 1. The Binary CDD shows lesser movement from long-term holders, supporting previous claims of more HODLers at the time of writing. However, the net unrealized profit and loss show few investors in profit, increasing anxiety over the following price action.
Transfer volume is slightly up as active addresses increased by 44%. Transactions increased by over 36%, indicating notable network activity. Additionally, open interest broke its seven-day trend, seeing a slight rise in 24 hours.
On the other hand, traders are dumping more assets into exchanges, as inflows increased by 77%. Due to this trend, exchange reserves are rising. They surged by 0.22% over the last seven days but were slightly lower during the previous 24 hours.
Transfer volume is slightly up as active addresses increased by 44%. Transactions increased by over 36%, indicating notable network activity.
Bitcoin May Return to $90k
The one-day chart shows some bullish indicators. One such is the moving average convergence divergence. The metric shows the 12-day EMA in contact with the 26-day EMA. A positive interception may see the largest coin surge higher.
The market value to realized value ratio is negative, as shown in the chart above. This may indicate an impending spike in buying pressure.
Nonetheless, the Fibonacci retracement levels show Bitcoin trading close to the 50% fib level. Further price hikes may send it above the mark. Based on previous price movements, the apex coin will look to retest the 38% fib level at $88k.
BTC has a high chance of returning to $90k if fundamentals remain positive. A flip of the $88k resistance may send it above this price mark.
