Bitcoin’s MVRV Ratio hints at ‘cyclical bottom’ forming below $110K

Bitcoin (BTC) may be forming a "cyclical bottom," according to CryptoQuant analyst ShayanMarkets, as its Market Value to Realized Value (MVRV) ratio recently dipped below its 365-day moving average. Historically, every time this ratio has fallen below the 365 SMA, it has signaled a local bottom and presented a buying opportunity, preceding major rallies like the 135% surge after mid-2021. The current decline reflects reduced speculative excess, and if the metric turns upward, it could confirm a renewed bullish phase into Q4, with potential short-term targets around $115,000 to $190,000.

Furthermore, analysts suggest that capital rotation from gold could fuel Bitcoin's rebound. Michaël van de Poppe noted gold's recent sharp decline, suggesting a potential shift back into Bitcoin and altcoins, especially if the upcoming US CPI report is soft, boosting risk-on appetite. Bitwise analysts even project that a mere 5% capital shift from gold to Bitcoin could drive BTC's price toward $240,000.

(Source：Cointelegraph)