Bitcoin Price Prediction: Is a Major Rebound Ahead for BTC?

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Bitcoin (BTC) price has continued to validate short-term bearish sentiment after sliding below $95k on Wednesday, during the mid-morning of the New York trading session. The flagship coin has experienced a significant decline in bullish momentum since mid-November.

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Midterm Expectations for Bitcoin Price Via MVRV Pricing Bands

With the fear of Bitcoin price continuing in bearish sentiments in the coming days, possibly below $90k, the Market Value to Realized Value (MVRV) indicator has been suggesting a major rebound ahead. Currently, Bitcoin’s MVRV ratio is above the 1-year Moving Average (MA) of 2.18.

Historically, Bitcoin price has spent around 5 percent of its trading days above the 3.2 MVRV ratio. Typically, Glassnode noted that the threshold for extreme euphoria is achieved after hitting above the 3.2 MVRV ratio.

As such, if Bitcoin price were to reach the 3.2 MVRV ratio, which is associated with extreme euphoria, the corresponding value would be around $132k.

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Market Picture

Bitcoin price has continued to experience diminishing returns amid the ongoing mainstream adoption led by institutional investors. However, the rising confidence in Bitcoin will continue to attract more cash flows from the Gold market and the traditional financial (TradFi) in the coming years.

Moreover, more nation-states will likely follow El Salvador after the United States under the Donald Trump administration implements a strategic Bitcoin reserve. As a result, the demand vs supply shocks will continue to increase amid rising demand from long-term investors.