Bitcoin Faces Resistance After Recent Surge.

Bitcoin (BTC) halted after breaking through the $67,000 resistance. Last week, the upward movement reached $72,000 on May 21. As of writing, it has fallen by 5.7% to $67,800.

Bitcoin Inflows.

A recent report investigated the demand for Bitcoin-backed investment products, with most inflows coming from the US. The recent drop quickly cut the upward trend, showing that bulls are not yet ready to surpass $71,500. However, the long-term outlook remains bullish, and according to one metric, we are only halfway through the bull run. Crypto analyst Axel Adler used Bitcoin MVRV Z scores in a post on X to show that only half of the current cycle is complete.

This metric evaluates whether Bitcoin is overvalued or undervalued compared to its fair value. MVRV can mean the market value to realized value, comparing the token's market capitalization to the cumulative capital inflow into the asset. When the former is much higher, it indicates a potential peak. The MVRV Z- score compares the MVRV difference to the standard deviation of Bitcoin's market value. In previous cycles, an MVRV-Z score of 7 or higher marked cycle peaks.

Historical Data on BTC.

During the recent run, the metric rose to 3.07. This could mean we will see more price increases in the coming months. The group of BTC holders for six months and over saw activity on February 28. The 3-6 month age range was particularly active, showing profit-taking activity from this group.

Similarly, those relatively active in the market over the past two months and who recorded a selling move on May 21 when prices rose above $70,000 were the 1-3 month holders. However, most older holder groups did not see intense selling activity on exchanges in April and May. This is because the expectation of a post-halving price increase in crypto currency has not yet disappeared.