The past week has proven to be quite volatile for the crypto market, with multiple major altcoins posting major gains while Bitcoin traded sideways within the lower-$10,000 region. Yesterday, however, this bullish momentum grinded to a halt when Bitcoin (BTC) plummeted below $10,000, which may spell trouble for the markets in the near-term. In spite of this potential bearishness, one prominent crypto analyst is now noting that one piece of on-chain data may signal an underlying bullishness for the cryptocurrency, which may mean that today’s drop is simply a flash in the pan that is ultimately followed by an extension of its recent established upwards momentum.

Bitcoin Dips Below $10,000 in Sharp Overnight Movement 

At the time of writing, is trading down nearly 3% at its current price of $9,920, which marks a slight retrace from its 24-highs of $10,300 and an even steeper drop from its weekly highs of nearly $10,500.

Bitcoin’s inability to maintain its position within the five-figure price region certainly signals that bears may currently have a slight edge over bulls, and it also points to the possibility that BTC will once again revisit its historically established support level around $9,300.

In the near-term, it does appear that BTC’s bulls and bears are currently locked in a tight battle, and the low-$10,000 region may mark a turning point where the crypto’s near-term trend grows increasingly clear. The Cryptomist, a popular crypto analyst on Twitter, spoke about the importance of this level, explaining that she expects BTC to move upwards towards $10,050, which is where it may once again incur significant selling pressure that sends it reeling lower.

“$BTC: There was the drop mentioned. However, am little surprised at the strength of the bulls. I do see bulls pushing this back up to 10050 range, where we could load up for another drop. No bias however, waiting for 10050,” she explained.

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There was the drop mentioned.
However, am little surprised at the strength of the bulls

I do see bulls pushing this back up to 10050 range, where we could load up for another drop. No bias however, waiting for 10050 🙂 — The Cryptomist (@Thecryptomist)

On-Chain Data May Bolster BTC’s Bulls

Despite its seemingly bearish price action in the near-term, it is important to note that Bitcoin’s on-chain data may point to further bullishness in the near-term.

Luke Martin, a prominent analyst, spoke about this in a recent tweet, explaining that BTC’s MVRV ratio may provide positive data for the crypto’s bulls.

“With $BTC continuing its month-long chop, I’ve been learning more about on-chain metrics. MVRV ratio gives a good idea of exchange price relationship to “fair value” of a Bitcoin. MVRC <= 1 has been an excellent buy every time,” he explained while pointing to the below chart that shows that Bitcoin’s MVRC is currently well below 1.

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With continuing it's month long chop, I've been learning more about on-chain metrics. MVRV ratio gives a good idea of exchange price relationship to "fair value" of a Bitcoin. •MVRC <= 1 has been an excellent buy every time. — Luke Martin (@VentureCoinist)

The coming days and weeks will likely prove to be quite illuminating as to what direction Bitcoin will trend in the coming days and weeks, and its near-term price action could even set the tone for the rest of 2019.

Featured image from Shutterstock.