Bitcoin seeks to establish $86K as a new support after oil drops below $90

On Tuesday, the Bitcoin ( BTC ) narrowly rallied near $86,000 after touching a new high in nearly 33 weeks the day before. Meanwhile, international crude oil prices fell to about three-week lows and macroeconomic sentiment combined with data from on-chain became the focus of market attention.

Oil drops below $90 Bitcoin closes in the $86,000 range

According to TradingView, the price of Bitcoin surged on Monday to $87.350, its highest level since Jan. 29, followed by a significant cooling in volatility with prices settling at around $86,000.

On the U.S. equity side, President Trump's speech at the United Nations General Assembly in New York saw stocks plummet overall. Trump told leaders attending that he would push for an agreement to end the Iran-US war but hinted that progress could wait until after the November 2013 midterm elections. He said: "I think we will reach a deal once the general election is over because there is no reason for them not to do it".

WTI crude fell to $89.16 a barrel, the lowest level since September 4. Reuters cited three anonymous sources as saying that Saudi Arabia has reopened its critical pipeline and full recovery is expected in six to eight weeks.

on-chain indicator shows: bear market Coin stage or near end

on-chain analytics platform Glassnode in assessing the current position of Bitcoin points out that a classic momentum indicator has reset to its key long-term trend line. The MVRV ratio for Bitcoin , (the ratio between market cap and realized value) is currently crossing its 365-day moving average.

This is the same crossing pattern that occurred at the start of both rounds bull market in 2019 and 2023. The MVRV ratio aims to measure current supply relative to whether an investor paid a premium or discount last time, with higher MVRV values typically meaning more unrealized gains in the on-chain wallet.

The data shows that the ratio is currently at 1.62, continuing to rise from 1.19 on August 16, but still a long way away from its historical high of 3.7 in bull market 's top earning zone.

Another on-chain analytics platform, CryptoQuant, is concerned that the 30-day moving average of the MVRV ratio has breached long-term dips below 1.5 for several months. The company judged in a blog post that this was the first breakthrough since January, marking an end to investors' announcement of a lengthy coin phase.

This is a risky suggestion, but it's worth considering. . . . This article is for general information only and does not constitute any investment advice. crypto asset Prices fluctuate wildly, please evaluate risks carefully to make rational decisions.