Bitcoin Price May Surge as MVRV Ratio Signals Long-Term Accumulation

Bitcoin's technical indicators suggest that the cryptocurrency may be entering a period of long-term accumulation. According to on-chain analyst Ali Martinez, the Market Value to Realized Value (MVRV) ratio has slipped below its 180-day Simple Moving Average (SMA), which historically precedes major rallies.

The MVRV ratio is a widely used metric in on-chain analysis that determines whether Bitcoin is overvalued or undervalued relative to the average acquisition cost of holders. When the ratio falls below its long-term moving average, it often signals a period of accumulation where smart money builds positions. Martinez believes this setup could lead to a rally towards $94,850 as long as the asset continues holding above the key $72,960 support region.

However, despite the bullish on-chain outlook, Bitcoin's price remains under pressure due to ETF outflows and inflation concerns. The U.S. spot Bitcoin ETFs have recorded net outflows of nearly $1.27 billion over the past three days, with BlackRock's IBIT accounting for a significant portion of the withdrawals.