Bitcoin (BTC) has reached a new all-time high (ATH) above the $100,000 level, sending strong signals that the bull run is set to continue.
In recent days, Bitcoin has broken through the $100,000 level to reach a new high. This development has fueled speculation among many investors that BTC has reached its peak in its current cycle. However, different indicators indicate that the bull rally in Bitcoin is not over and that the rise will continue.
One of the most important indicators that Bitcoin’s price could rise further is the Market Cap/Realized Value (MVRV) ratio. This metric is used to determine whether Bitcoin’s current phase is a bull or bear market.
A positive MVRV ratio indicates that long-term investors have more unrealized profits than short-term investors. This is generally considered a bullish signal for Bitcoin. A negative MVRV, on the other hand, indicates that short-term investors are taking advantage and usually signals a bearish phase. According to Santiment data, Bitcoin’s MVRV long/short spread currently stands at 27.25%, suggesting that the current market cycle is still a bull market. However, the ratio, which reached 42.08% before the consolidation and correction period in March, is currently quite low. Based on historical data, Bitcoin is predicted to break out of its current ATH and make new highs.
Another important indicator is the Realized HODL Ratio (RHODL), which is widely used to identify Bitcoin market bottoms and tops. A high RHODL ratio usually signals cycle tops or corrections, while a low RHODL ratio indicates that investors tend to hold their assets for the long term.
According to Glassnode data, Bitcoin’s RHODL ratio is currently in the green zone, indicating that Bitcoin is not bottoming out. However, the ratio has not yet reached the red zone, indicating that Bitcoin has not yet reached its cycle top. If this trend continues, Bitcoin’s price is likely to break out of its current ATH and reach even higher prices.