RBC.ru - CryptoQuant experts analyzed key metrics and conditions for the continuation of Bitcoin’s bullish rally
A number of market indicators indicate the potential for further growth of Bitcoin, according to experts from the CryptoQuant analytical platform.
In their opinion, one of the key market indicators that allows you to evaluate cryptocurrency, MVRV (Market Value to Realized Value), suggests that “the bull market is not over yet.”
The MVRV (Market Value to Realized Value) indicator shows the ratio of an asset's capitalization to its realized value, that is, to the price of recent purchases. It helps you understand when the current market price of an asset is below its fundamental value. An MVRV ratio below 1 indicates that the asset is in the accumulation phase, which makes its price attractive for investment. Indicator values above 3 indicate overbought conditions.
MVRV indicator. Source: CryptoQuant
“Bitcoin's MVRV currently stands at 2.78, well below its peaks of 4.83 and 3.97 reached in 2017 and 2021, respectively. It has still not entered the revaluation zone, and further growth can be expected,” wrote on-chain analyst Crypto Dan.
After reaching a peak of $74 thousand in March 2024, Bitcoin has been in a state of sideways trend and correction for more than two months. CryptoQuant experts believe that after this long period of calm, a new rally is possible in June.
CryptoQuant's head of research, Julio Moreno, pointed out that Bitcoin investors' unrealized gains, i.e. the theoretical profits that Bitcoin holders could have made by locking in positions, had dropped to 3%, well below the March high of 69%. For this reason, he considered that strong sales had exhausted themselves.
Realized value of Bitcoin for short-term holders and profit/loss. Source: CryptoQuant
According to experts, after a two-month decline, large market players, the so-called “whales,” have become active again, demonstrating a sharp increase in interest in purchasing Bitcoin. This surge in activity signals that current Bitcoin price levels are viewed as attractive for purchase and long-term accumulation of the first cryptocurrency.
The total volume of assets of the “whales” and their monthly changes. Source: CryptoQuant
CryptoQuant analysts also note a stabilization of Bitcoin balances on over-the-counter (OTC) trading platforms, which leads to a decrease in the supply of coins entering the market.
“Demand from long-term holders and large investors is stabilizing, but it must accelerate to maintain growth,” experts say.
In their opinion, to support higher price levels, further growth in demand from large investors and increased purchases from exchange-traded funds are necessary. Without this, Bitcoin's price rally may struggle.
