- BTC is close to retesting its all-time high as it rises to the $70,000 price level.
- Indicators are showing that a bull run might be on the horizon.
As Bitcoin [BTC] holds strong above the $70,000 level, investors are increasingly optimistic about the potential for a Bitcoin bull run. By analyzing key indicators, such as the NVT (Network Value to Transactions) ratio, active address data, and current price momentum, we can understand whether Bitcoin is setting the stage for a long-term bullish phase or if caution might be needed.
NVT Ratio signals stability for Bitcoin bull run
The NVT ratio, often compared to Bitcoin’s “price-to-earnings” ratio, provides insight into whether the asset is overvalued or undervalued based on network activity.
Currently, the NVT ratio reflects a balanced and healthy market, showing that Bitcoin’s network is handling the heightened demand without signs of overheating.
Source: CryptoQuant
Historically, a steady or low NVT ratio during price growth has laid the groundwork for a Bitcoin bull run, as it suggests the rally has a strong foundation.
This favorable NVT reading hints that the current price momentum might have the resilience needed to sustain a longer bullish trend.
Rise in active addresses adds fuel to bullish sentiment
A recent uptick in active Bitcoin addresses also supports the case for a Bitcoin bull run. With active addresses now consistently above 935,000, network activity shows healthy growth.
