Bitcoin [BTC] Could Be Gearing Up for a Fresh Rally, Two Key On-Chain Indicators Flash Historical Reversal Signals

Bitcoin's Ssell-Side Risk Ratio has plunged to 0.086%, its lowest level in months. This metric falling below 0.1% has marked strong bounce-back zones, reflecting suppressed realized profits relative to market cap.

Bitcoin price has struggled to break free from a key technical level, but two on-chain indicators are flashing historical reversal signals.

What Happened: Bitcoin's Sells-Side Risk Ratio has dropped to 0.086%, reaching its lowest point in months, according to Glassnode. This metric, which measures the potential for sellers to impact price, dipped below 0.1% during significant rebound zones.

The indicator highlights periods of suppressed realized profits relative to market cap, which can occur when investors are hesitant to sell, reducing overhead pressure on price.

The last time the ratio fell below 0.1% was during Bitcoin's correction in September, just before it staged a recovery to new highs in Q4.

Currently, the ratio is again signaling a limited risk of profit-taking, setting the stage for a possible reversal if buying momentum returns.

At press time, Bitcoin is trading at $81,099, remaining below the 50-day moving average of $84,934. The 200-day moving average stands at $93,916.

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The 70-day MVRV momentum is also on the verge of breaking above its moving average, a crossover that has historically confirmed bottom formations.

The MVRV ratio, which compares market value to realized value, is used to identify undervaluation zones.

Bitcoin's MVRV ratio has remained below the 70-day average for weeks, similar to the pre-bullish setups observed in late October and January. A confirmed breakout could act as the final confirmation of a bottom, especially as the broader macro environment shows signs of stabilization.

Why It's Important: Bitcoin's technical setup is pivotal as it determines the short-term trends and potential reversals in the cryptocurrency.

The inability to reclaim the 50-day MA poses a short-term challenge, but technical indicators suggest sellers are exhausted, and accumulation is returning.

If BTC can rise above $85K, it could unlock substantial buying pressure, setting the stage for a move toward the $90K psychological level.

Until then, the market may continue to range, presenting opportunities for accumulation strategies as Bitcoin shows resilience despite macroeconomic headwinds.