Bitcoin price recovers after falling

Bitcoin (BTC) is actively recovering after a drawdown to $89,000. The cryptocurrency has already overcome the psychologically significant level of $100,000 and is ready to move on.

Let’s figure out what’s happening in the Bitcoin (BTC) market and what to expect from the price of the cryptocurrency.

Bitcoin investors are in profit

At the time of writing, the MVRV ratio is 1.32 and reflects the positive sentiment in the Bitcoin market. This means that the average unit of BTC now provides its holder with an unrealized profit of 32%.

Even after the recent Bitcoin correction, the market remains optimistic. Thus, investor confidence in the long-term potential of the coin remains strong.

Historically unrealized losses of 4 million BTC indicate the beginning of a bear market. However, even after the drawdown to $89,000, losses did not exceed this critical threshold. This indicates the strength of the bullish momentum.

This fact also emphasizes that Bitcoin holders do not succumb to pressure and hold their positions despite short-term price fluctuations. So the likelihood of sustainable growth only becomes higher.

BTC Forecast: Rally Ahead

At the time of writing this BTC analysis traded at $102,497, having risen in price by a little more than 3% over the past 24 hours.

Now the price of Bitcoin is approaching the neckline of the double bottom pattern (marked in the graph below) at the level of $102,235. A breakthrough of this resistance could be the beginning of a rally.

The target for a breakout of this pattern will be $113,428. To reach this target, Bitcoin will need to first secure new support at $106,193 or $108,341. These are critical to continue the rise and prevent a potential trend reversal. A break above these levels will strengthen BTC’s bullish trend and increase investor confidence.

However, a failed attempt to consolidate above $102,235 threatens to cancel the bullish forecast. In this case, BTC will face a pullback below $100,000, likely to critical support at $95,668.

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Source: Cryptocurrency

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