Cryptocurrency markets are awaiting today's release of core PCE inflation data, trading in a tight sideways range

Cryptocurrency markets are awaiting today's release of core PCE inflation data, trading in a tight sideways range on Wednesday morning.

Notable Statistics:

* Cryptocurrency volumes fell sharply on Tuesday, with total spot volumes across major exchanges dropping to $4.4 billion, the lowest level since November 2021.

* Despite the low volumes, Bitcoin managed to rise slightly, testing the $40,000 mark once again.

* The latest data from Glassnode revealed that Bitcoin’s MVRV-Z, a metric used to assess the average price at which coins last moved, has just confirmed strong support.

Notable Developments:

* Trader CryptoCon highlighted the importance of the MVRV-Z indicator, which tracks the ratio of market value realized value and its z-score standard deviations from the mean.

* According to his analysis, Bitcoin has just confirmed support on this metric, which is said to be a "great indicator for market cycles."

* “There’s still lots of room for BTC to move up in price before we reach levels that are usually associated with cycle tops. So the bull market is still in an early stage,” said CryptoCon.

* Trader Jelle pointed out that Bitcoin is approaching the apex of an ascending triangle, a classic bullish continuation pattern that occurs when a security trades in a triangle formation while making higher lows and highs.

* According to Jelle, such patterns are usually associated with a breakout to new highs.

* Trader Inmortal noted that the recent price action reminds him of vertical accumulation phases seen in past bull markets, which are powerful consolidation zones that occur quickly and vertically and are usually followed by explosive upward moves.

* A breakout from here would be "a strong show of strength."

* Analyst Ali Martinez observed a golden cross between the MVRV Ratio and its 365-day simple moving average, a rare technical event that occurs when a faster-moving average crosses above a slower-moving average.

* Martinez said that this technical pattern is usually associated with the start of major Bitcoin bull rallies.