It has been just revealed that Bitcoin is now in the early stages of an important bull market. Check out the latest reports about the matter below.
At the moment of writing this article, BTC is trading in the red and the king coin is priced at $34,181.
Bitcoin is in the early stages of a bull market
According to a recent blog post by crypto analytics firm IntoTheBlock, Bitcoin (BTC) has entered the initial stages of a bull market cycle.
The firm suggests that the market-value-to-realized-value (MVRV) ratio of Bitcoin is showing similarities to previous bear-to-bull market transitions.
“When the MVRV ratio drops below 100%, it shows that Bitcoin is at prices below than the average purchasing price of its holders. Bear markets have tended to bottom when the MVRV drops to 70% to 80%, representing a buying opportunity. Additionally, every time that the MVRV has gone back above 100% after falling below it has pointed to the beginning of a bull market.”
The notes continued and said this:
“By this metric, Bitcoin’s bull market began in January of this year and could have further room to appreciate if it reaches the levels of 300%+ in MVRV seen towards the end of previous bull markets. Overall, on-chain indicators appear to suggest Bitcoin is in the early stages of a bull market.”
According to the online publication the Daily Hodl, the MVRV is the ratio of an asset’s market cap versus its realized capitalization – the value of all Bitcoin at the price they were bought at, not the current price – and seeks to capture market bottoms and tops.
On the other hand, it is also important to note the fact that IntoTheBlock warns that there is a chance that the prior MVRV and BTC market patterns may not repeat this time around.
“Ultimately, though previous patterns do not necessarily guarantee Bitcoin’s returns, the alignment of positive supply and demand catalysts increase the likelihood of another Bitcoin cycle taking place.”
