Chris Berniske: bitcoin is teetering on the brink of a bull run and a price pullback

Despite the recent drop in the bitcoin rate BTC $96,492.86 Bitcoin -1.79% Market capitalization $1.91 trillion VOL. 24 hours $2.08 billion , cryptocurrency market experts remain optimistic about the further growth of the most popular cryptocurrency.

Chris Berniske, former head of Ark Invest and partner at Placeholder Venture Fund, draws parallels with the situation in 2021, when bitcoin was able to recover and reach a historic high of $ 69,000 after falling to $ 30,000.

The technical indicator Short-Term Holder MVRV, which tracks the behavior of short-term bitcoin holders, has dropped to a neutral level from the previous 1.35. According to analyst Axel Adler, this may indicate the end of the market overheating period and point to the approach of a local low.

The critical support level for bitcoin is currently considered to be $ 96,000, which is the average purchase price of cryptocurrency by short-term traders over the past 1−3 months. A fall below this level could trigger panic selling, while holding it can strengthen the uptrend.

In early February, bitcoin already showed a drop to $ 91,000, but managed to recover above $ 96,000. At the same time, activity on the BTC network reached an annual low, which may indicate a temporary overvaluation of the cryptocurrency.

Further dynamics of the flagship crypto market will largely depend on macroeconomic factors and decisions of the US authorities, including potential new customs initiatives of the Trump administration, which may determine the direction of the market in the coming weeks.