Since Bitcoin’s (BTC) price surpassed the $100,000 mark and hit a new all-time high, there has been speculation that the cryptocurrency might have hit this cycle’s top. However, several key Bitcoin indicators suggest that this bias stems from personal opinion and is not supported by historical data.
At press time, BTC trades at $101,449. This on-chain analysis explains why the coin’s price might still have room to grow despite recent consolidation.
Bitcoin Continues to Remain in a Bullish Phase
A significant metric suggesting that Bitcoin’s price might rally again is the Market Value to Realized Value (MVRV) long/short difference. Historically, this metric reveals when BTC is in a bull phase or has switched to a bear market.
When the MVRV long/short difference is in positive territory, it indicates that long-term holders have more unrealized profits than short-term holders. Price-wise, this is bullish for Bitcoin. On the other hand, when the metric is negative, it implies that short-term holders have the upper hand, and in most cases, it signifies a bearish phase.
According to Santiment, Bitcoin’s MVRV long/short difference has risen to 27.25%, indicating that the current cycle is a Bitcoin bull market. However, the reading is far below 42.08, which it reached in March before experiencing months of consolidation and correction. Going by historical data, this current condition suggests that BTC is likely to surpass its all-time high before the top of this cycle.
The Realized HOLD ratio, commonly referred to as the RHODL ratio, is another key Bitcoin indicator supporting this bias. The RHODL ratio is a widely regarded market indicator designed to analyze Bitcoin’s market bottoms and tops.
A high RHODL Ratio sugge
Go to Source to See Full Article
Author: Victor Olanrewaju
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
