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Eyes were on the Federal Reserve’s interest rate decision announced last evening. While the rates were kept steady, the cryptocurrency market suddenly became active. Despite the price initially rising above $59,000 and then falling below $57,000, it has recovered today and returned to these levels. Bitfinex analysts had significant comments about the Bitcoin price movement.
Will Bitcoin Rise According to Analysts?
Analysts at the crypto exchange Bitfinex noted that two key indicators suddenly provided a bullish outlook for Bitcoin (BTC).
In a new blog post, Bitfinex analysts highlighted Bitcoin’s Market Value to Realized Value (MVRV) ratio, indicating that the leading cryptocurrency’s price is likely to rise.
According to analysts, the significant indicator, MVRV, shows that Bitcoin, which has been declining since the beginning of April, is now undervalued.
The second indicator that analysts mentioned, which suggests a rise in Bitcoin, is the Open Interest (OI) weighted funding rate, which has turned positive after a period of predominantly negative outlooks.
The analysts explained the situation with these words:
Currently, two important on-chain Bitcoin metrics potentially indicate an advantageous buying opportunity. Alongside the Open Interest weighted funding rate, the Market Value – Realized Value metric points to a potential entry point for investors…
Various on-chain measurements including the MVRV metric and OI weighted funding rate currently signal a potentially attractive entry point for Bitcoin investors.
Funding rates represent the sentiments traders hold in the perpetual swap market, and the resulting amount is proportional to the number of contracts. Positive funding rates indicate a dominance of investors holding long positions, currently suggesting a willingness to pay those in short positions.
Conversely, negative funding rates indicate a dominance of short positions and a readiness to pay those holding long positions.
How Much is Bitcoin Now?
As of writing, Bitcoin is trading at $59,400, showing an approximate 3% increase over the last 24 hours.
Additionally, the market cap has approached $1.2 trillion again. The trading volume over the last 24 hours has fallen to $33 billion after a 30% decrease.
