Following a dip to $91,500 last week amidst fears of a global trade war, Bitcoin (BTC) has shown signs of recovery, with the Advanced NVT metric suggesting a potential price rally. The metric, which evaluates Bitcoin's market valuation relative to its transaction volume, has indicated local bottoms on four occasions in the past year, each followed by a price recovery. The recent drop to 38.13, a level consistent with past local bottoms, suggests a similar outcome.
However, despite the potential for a short-term bounce, historical data suggests Bitcoin may remain in consolidation for some time before a strong price rally. Bitcoin is currently trading in a range between $95,000-$100,000, and bulls will need to overcome resistance at $102,000 to trigger a significant price increase.
Adding to the bullish sentiment, blockchain analytics company IntoTheBlock reports a three-week streak of net exchange outflows, totaling $267 million. This indicates investors are moving their assets off exchanges, reducing potential selling pressure. While the recent outflow volume is lower than November 2024 levels, it still suggests growing investor confidence.
At the time of writing, BTC trades at $96,720, down 0.84% in the past 24 hours. The asset experienced a turbulent week with an overall loss of 6.48%, pushing its monthly gains to 2.90%. With a market cap of $1.9 trillion, Bitcoin remains the largest cryptocurrency and the eighth-largest asset globally.