Numerous Bitcoin investors express concern due to the unpredictability of its value, with traders observing rapid changes where the digital currency was bought and sold at prices exceeding $100,000 only to dip back under $90,000 shortly afterwards.
Nevertheless, a well-known cryptocurrency analysis firm maintains that the current bull run for Bitcoin is still ongoing. They believe that the turbulence Bitcoin experienced in recent weeks has not weakened this trend.
Bitcoin Remains In Bullish Territory
A widely recognized platform for analyzing digital assets holds the opinion that Bitcoin remains in a bullish phase, even after the recent adjustment in its value.
As an analyst, I’d like to share my insights based on the recent Glassnode report, which highlights several indicators suggesting that the ongoing bull market of Bitcoin is still strong.
Currently, Bitcoin has dropped by 11.1% from its all-time high of $108,000, but it’s trading above crucial support points according to Glassnode’s analysis. This implies that the overall bullish trend in the market might continue for now.
The cryptocurrency analysis tool observed that the situation is made more complex due to a comparatively low level of investor anxiety in the market, as indicated by minimal potential losses yet to be realized.
The Scoring System
According to the crypto research group, they utilized an enhanced MVRV Z-score within a one-year timeframe to determine whether the lead cryptocurrency was currently experiencing a bullish surge or a bearish downturn.
“According to this model, we are also still within bullish territory, although the Short-Term Holder cost basis remains $88.4k is a key level to watch for maintaining constructive sentiment,” the crypto firm added.
The cryptocurrency company explains that the MVRV (Momentum Value Ratio for Virtual) metric helps in determining Bitcoin’s pricing extremes by comparing its market value to the price at which it was last traded. Essentially, this metric indicates how many standard deviations the current value is from its historical average.
When Does BTC Peak?
According to Glassnode’s analysis, the value of cryptocurrency may reach a high point approximately two standard deviations above the average. Furthermore, the report suggests that the market remains optimistic provided the cryptocurrency continues trading above its average level.
As an analyst, I’ve observed that when Bitcoin (BTC) trades below its average and approaches approximately 1.5 standard deviations below the mean, this often serves as a signal indicating a bearish trend for the coin.
As per Glassnode’s analysis, the average MVRV Z-score stands at approximately $91,000. This implies that if the crypto market experiences a movement of two standard deviations above this point, the estimated price would be around $113,000. Conversely, if the market moves one and a half standard deviations below the $91,000 mark, Bitcoin is expected to align with a price of about $75,000.
As a crypto investor, I’ve come to realize that our analysis group has determined that the price of $99,000 per coin places Bitcoin squarely within bullish territories.
Currently, a single Bitcoin is valued at approximately $102,242, and its overall market value exceeds the impressive figure of $2 trillion.
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2025-01-18 02:41