Bitcoin has been consolidating around $123,000 after an 8% leverage flush, resulting in a prospective new value area that may enable a rally towards $150,000 in Q4.
Key Points:
- BTC remains in a tight range above $120,000 post a futures market reset.
- Increased spot buying and reduced open interest signal renewed buyer confidence.
- The MVRV ratio indicates a potential price hike of 15% to 25%, targeting $140,000 to $150,000 by year-end.
According to analysts, Bitcoin’s price action suggests it may establish a short-term demand zone near $123,000. Reports from market analyst Skew revealed that buyer interest is returning, as shown by upswings in trading volumes.
Analysis of Bitcoin spot and futures activity by Skew. Source: X
Simultaneously, bidding in futures markets has realigned near the $120,000 threshold, with decreasing open interest indicating that many short positions were liquidated during price rebounds.
Future projections lean towards a favorable fifth quarter, highlighted by Timo Oinonen reporting that the MVRV ratio hints at a realistic rise in Bitcoin’s valuation. Meanwhile, recent market dynamics have raised expectations of a more sustainable price increase as investments flow back into the ecosystem.
BTC MVRV analysis by Timo Oinonen. Source: CryptoQuant
While some market analysts predict a potential rise to $170,000 to $200,000, fueled by renewed investor enthusiasm and potential supply constraints post-halving, caution remains as every investment entails risk. Readers are advised to perform independent research prior to investment decisions.
