The BTC price has witnessed so many ups and downs since the month started. After rising as high as $10,400 at the beginning of June, BTC witnessed a massive correction and is now trading in the low-$9,000 levels. At press time, the BTC price is up by a little below one percent and is trading at $9,190.
Many analysts have stated that the rejection BTC faced at $10,400 was bearish, though a bear trend is yet to form. Notably, the $10,400 level was the exact region BTC faltered at in February, prior to the historic crash in March, where BTC dropped to a yearly low at $3,700.
Meanwhile, a key on-chain signal that appeared at the start of 3 previous bull runs has just flashed. This was noted yesterday on twitter by a prominent crypto technical and on-chain analyst, MMCrypto. He published that the MVRV Long/Short Differential indicator has flashed again and BTC could start a massive bull run soon.
According to blockchain analytic firm Santiment, the MVRV Long/Short Differential crossovers illustrated by the analyst indicate moments where average long-term and short-term traders officially move into profit territory. The analytic firm added that this tend to be a psychological barrier for many traders in which results in FOMO.
This indicator is important to crypto traders because every time the metric has historically crossed one, rallies have followed suit. The first incident happened in 2012 when the metric crossed one before BTC rallied to $1,000. It repeated in 2015 when the metric crossed one before the price rallied by almost 2,000% to $20,000. The most recent one was after the 2018 bear market when the metric crossed one to precede the price rally to $14,000.
This historic precedent suggests that the BTC market may be poised for a massive rally in the coming sessions.