Bitfinex Analysts Says Bitcoin’s Bullish Momentum Supported by Two Critical Metrics

Two significant variables that point to a positive trend for Bitcoin (BTC) have been discovered by analysts at Bitfinex, a well-known cryptocurrency exchange. These measures provide insightful information about the possible future course of the top cryptocurrency.

Analysts at Bitfinex believe that the Market Value to Realized Value (MVRV) ratio of Bitcoin is pointing to a possible upward trend in its price. By comparing the market and realized capitalizations of Bitcoin, MVRV determines if the cryptocurrency is now undervalued or overpriced. The MVRV ratio indicates that, following a fall at the beginning of April, Bitcoin is currently undervalued, offering investors a favorable purchasing opportunity.

Positive Turn in Open Interest (OI) Weighted Funding Rate

The second bullish indicator identified by Bitfinex analysts is Bitcoin’s Open Interest (OI) weighted funding rate. This rate has recently turned positive after experiencing multiple negative dips. The shift in sentiment among traders is reflected in this metric, indicating a growing confidence in Bitcoin’s upward movement.

In the words of the analysts themselves, “Currently, two important Bitcoin on-chain metrics signal a potentially advantageous buying opportunity.” They emphasize the significance of both the MVRV measure and the OI weighted funding rate in identifying favorable entry points for investors.

Funding rates in the perpetual swaps market represent traders’ sentiment and their willingness to pay funding fees. Positive funding rates indicate a dominance of long position traders, while negative rates suggest a prevalence of short position traders.

At the time of writing, Bitcoin is trading at $59,597, marking a nearly 3.80% increase in the past 24 hours. This uptick in price aligns with the bullish signals identified by Bitfinex analysts, further corroborating the potential for a positive trend in Bitcoin’s value.