"Is below $80,000 the real buying opportunity?"...Bitcoin, Smart Money Accumulation Signal ON

▲ Bitcoin (BTC)

As Bitcoin (BTC) fluctuates below $80,000, an analysis suggests that a new buying opportunity has opened up for long-term investors, as the Market Value to Realized Value (MVRV) indicator has fallen below its 180-day moving average.

Bitcoinist reported on May 21 (local time) that market expert Ali Charts analyzed that Bitcoin's Market Value to Realized Value (MVRV) indicator had dropped below its 180-day moving average. This indicator is used to compare Bitcoin's market value and realized value to determine whether the current price is overvalued or undervalued compared to investors' average purchase price.

Ali Charts interpreted the situation where the indicator fell below the 180-day moving average as a state where market premium has been removed and a deep discount zone has been reflected. He explained that in the past, such periods also opened up possibilities for long-term accumulation, forming a basis for smart money to build positions.

However, short-term price movements have not yet secured a clear direction. Ali Charts believes that Bitcoin could continue a compressed trend while the indicator remains below the 180-day moving average. In this scenario, it could be a strategic accumulation zone for investors to prepare for the next bullish phase.

The key price level for the short-term chart was presented as $77,800. Bitcoin formed a channel after a long period of sideways movement on the 15-minute chart and rose to around $77,800, the upper bound of the channel, with a short rebound. Ali Charts believes that if Bitcoin definitively breaks this resistance, its upward momentum towards $79,000 could accelerate.

Conversely, if Bitcoin fails to overcome the $77,800 resistance, it could fall back into the channel. In this case, the internal support level is presented as $76,900, and the bottom of the channel as $76,000. Ali Charts emphasized that a decisive candle close above $77,800 is required to enter the next upward phase.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*