Bitcoin Tests Strength at $86K Amid Oil Price Drop
Bitcoin's price has been consolidating around $86,000 after hitting fresh 33-week highs on Monday. The cryptocurrency's volatility has cooled down according to data from TradingView, with Bitcoin hitting a high of $87,350 on the day prior.
The drop in crude oil prices below $90 per barrel may be contributing to Bitcoin's stability. WTI crude oil fell as low as $89.16 per barrel, its lowest since September 4, but has since reversed towards $92.
Onchain analytics platform Glassnode noted that Bitcoin's market value to realized value (MVRV) ratio has crossed above its 365-day moving average, a sign of the end of bear-market accumulation. The MVRV ratio currently sits at 1.62 and remains far from the 3.7 level that marks the profitability zone for bull-market tops.
CryptoQuant also observed a breakout from a multi-month resistance level for the MVRV ratio's 30-day moving average below 1.5, which could confirm the reversal of the ongoing bear market and bring back Bitcoin's all-time highs as a price target.