Bitcoin has registered a new upward movement in its price and has left the good zone to buy, according to a technical indicator followed by the community.
Over the past 24 hours, the modest 2% rise doesn’t reveal much about the move, although this is one of the key price levels of the past few months. This is because, since June 12, 2022, the price of bitcoin has not come close to $25,000.
Thus, it is clear that the new upward movement has been important for a market that has been sideways for a few weeks.
An indicator shows that the price of Bitcoin has left the best buy zone
For those who are fans of Bitcoin and long-term trust in the currency, every day can be a buying opportunity, especially for those who trust the Dollar Cost Average, or DCA.
However, medium-term traders usually follow good entry and exit signals in the digital currency, one of the indicators used for this being the MVRV Z-Score.
The theory of the respective chart indicator, which analyzes the activities on the blockchain, is that the price of Bitcoin has a “fair place” to trade, so it is possible to know when the price is below or above.
With this information, traders can learn the best times to buy and sell bitcoinwhich supposedly allows them to make higher profits on their trades.
When it is at the top of the chart, the price is above fair and the trend is for it to drop soon, indicating a good sell zone for the coin. However, when the price is in the low zone (green), everything indicates that the buy signal is positive, being a good accumulation zone.
In a Twitter analysis, analyst Philip Swift indicated that the price of Bitcoin came out of the good buying zone this Thursday (11), with the increase that brought the price of the coin to around $25,000.
“The MVRV Z-Score is now out of the green accumulation zone.”
In the past, the movement preceded market highs
In the graph shared by the analyst, it can be seen that when Bitcoin leaves the accumulation zone, the next step is for the market to rise in price.
As this is a widely used indicator by Bitcoin traders, created since 2018, it is mainly used to forecast BTC quotes.
However, since past performance is not a sign of similar behavior in the future, it is important for traders not to make their decisions based on just one factor and carefully manage their risks.
After reaching a price of $24,920 USD on some exchanges, bitcoin is still looking for $25,000 USD.