Bitcoin’s MVRV ratio dropping below its 365-day average signals a local bottom and potential big price rallies. Analysts suggest capital rotation from gold could fuel Bitcoin’s rebound. The BTC market may be forming a “cyclical bottom,” indicating a possible sustained recovery in the coming weeks. With Bitcoin’s MVRV metric signaling a “local bottom,” historical data shows potential for a significant price rally. The MVRV ratio currently stands near 1.9, below its 365-day moving average, historically marking buying opportunities and local bottom signals. The recent drop in Bitcoin’s MVRV ratio reflects reduced speculative excess and growing long-term confidence, possibly indicating a cyclical bottom formation. Analysts project short-term targets for Bitcoin around $115,000 and potentially as high as $190,000 if the last leg of the bull run unfolds. Gold’s 8.5% decline from its all-time high may signal a rotation into Bitcoin and altcoins, with gold potentially peaking for the moment. The US Consumer Price Index report for September is expected to be released, with a soft CPI print potentially triggering rate cuts and government shutdowns, fueling Bitcoin’s rise. Bitwise analysts suggest a 5% capital rotation from gold to Bitcoin could drive BTC price to $242,391. Gold’s pullback may drive Bitcoin’s rebound, with technical analysis projecting a potential BTC price rally to $150,000–$165,000 by year’s end.

Read more at Cointelegraph: Bitcoin Valuation Indicator Hints at a ‘Cyclical Bottom’: New Analysis