More corrections likely for Bitcoin
An analyst explained in a CryptoQuant Quicktake post that Bitcoin's market capitalization to real value ratio (MVRV) recently hit a two-year high. The MVRV ratio is an indicator that tracks the ratio between Bitcoin's market cap and realized cap. In other words, the realized cap measures the capital that its holders have invested in the digital currency. This means that investors make a net profit when the market value is higher than this model. Bitcoin's 30-day MA ratio MVRV recently hit a two-year high. During this rally, this metric was close to the 2.0 level, which means that the market cap has increased to twice the realized ceiling. If history repeats itself, there could be more bearish trends for Bitcoin before the bullish momentum returns.
