“Bitcoin’s early stages of a bull market present a compelling opportunity for investors, as highlighted by crypto analytics firm IntoTheBlock. However, the catch lies in navigating the volatile market conditions and understanding the risks associated with this emerging digital asset.”
Crypto analytics firm IntoTheBlock has identified a key metric that suggests Bitcoin has entered the initial stages of a bull market cycle. The metric in question is Bitcoin’s market-value-to-realized-value (MVRV) ratio, which is showing similar behavior to previous bear-to-bull market transitions.
When the MVRV ratio drops below 100%, it indicates that Bitcoin is priced below the average purchasing price of its holders. Historically, bear markets have bottomed out when the MVRV drops to 70% to 80%, presenting a buying opportunity. Furthermore, every time the MVRV has risen back above 100% after falling below it, it has marked the beginning of a bull market.
Based on this metric, Bitcoin’s bull market began in January of this year and could potentially continue to appreciate if it reaches levels of 300%+ in MVRV, similar to previous bull markets. Overall, on-chain indicators suggest that Bitcoin is in the early stages of a bull market.
It’s important to note that while previous patterns do not guarantee Bitcoin’s future returns, the alignment of positive supply and demand catalysts increases the likelihood of another Bitcoin cycle taking place.
At the time of writing, Bitcoin is trading at $33,841.
Please note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin or other cryptocurrencies.