AVIV Ratio still below peak points

Despite fears of a market top, Glassnode's AVIV metric shows that Bitcoin still has room to grow. The AVIV Ratio measures the average unrealized profit, or paper gains, held by active investors in the market.

According to Glassnode analysts, bull markets end when most investors are highly profitable, creating excess supply and a shortage of buyers. The metric has yet to reach the peak of previous cycles, suggesting that investors have yet to begin taking extreme profits as prices rise.

BTC AVIV Glassnode. Source: Glassnode

A similar sentiment was expressed by Michael Nadeau in The DeFi Report, suggesting that the dip in Bitcoin's price is a necessary pullback. He expects a short-term consolidation before the market resumes its upward trajectory.

Likewise, Santiment data reveals that the buy-the-dip trend among market participants has risen to its highest level in 8 months, signaling increased enthusiasm toward a market recovery.

With Bitcoin falling as low as $95.5K today, the ratio of crypto discussions that are about buying crypto's dip has reached its highest level in over 8 months. The last time we saw the crowd nearly this enthusiastic about dip buying was the major crash on August 4th. Since…