New Bullish Cycle Likely After Bitcoin Reaches This Level, Stats Show

After staging stable around the $30,000 level for some time, Bitcoin had fallen below $18,000 this month. In the past week, BTC managed to trade above the $20,000 range, although it has not yet reached the $22,000 mark. However, there are still some key levels that have yet to be crossed in order to hit a bullish cycle of Bitcoin.

On-Chain Indicator Shows Bitcoin Bullish Cycle Timeline

Taking into account the Market Value to Realized Value (MVRV) metric, Bitcoin would be undervalued at its current price level. According to a trader on CryptoQuant, BTC is undervalued as the MVRV ratio fell below a level for the first time since the Covid crash.

“The market has recently experienced a steep crash and has once again tested its previous record. As a result, the MVRV statistic has fallen below 1 level for the first time after the Covid crash and the mass capitulation, as the market’s momentum is not encouraging.”

The MVRV is the ratio of a coin’s market cap to the cap realized, which determines whether its price is overvalued or not. This on-chain indicator is useful in assessing the current market situation. In fact, the ratio provides important insights into traders’ buying and selling trends.

The CryptoQuant trader said that the market is currently in the late bear market phase. “A new bullish cycle is expected by the time this capitulation phase among retailers and long-term holders comes to an end.”

BTC’s Third Consecutive Week From Below Key Range

Meanwhile, Bitcoin price is about to close the month below the 200-week moving average for the first time. The current 200-week moving average level is around $22,300. At the time of writing, Bitcoin is trading at $20,829, down 1.84% in the past 24 hours, according to CoinMarketCap. Bitcoin’s 24-hour low is at $20,577, while its peak was $21,478.

Also, Bitcoin has formed a weekly candle below the 200-week moving average for the third consecutive time. While such a candle formed earlier this month for the first time since 2020, it continues as normal. This is the first time the same trend has been repeated three times.

Anvesh reports major developments around crypto adoption and price analysis. Anvesh has been associated with the industry since 2016 and is a strong believer in decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him at [email protected]

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.

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