Emily Walker
Concerns about Bitcoin’s fluctuations have risen among crypto investors, as its price recently bounced between over $100,000 and dipped below $90,000.
Despite the price swings, a prominent crypto analytics service maintains that Bitcoin’s bullish market phase is still active, emphasizing that the recent volatility does not signal the end of its upward trend.
Bitcoin Continues to Show Bullish Signs
A reputable analytics platform asserts that Bitcoin is still in a bullish market, even after facing price corrections.
Glassnode highlighted in its latest report several indicators that suggest Bitcoin’s bull market remains strong.
According to Glassnode, “Bitcoin has entered a correction phase and is currently 11.1% below the all-time high of $108k. However, the current price is still above several critical support levels, implying that the bullish market framework is holding strong for now.”
The platform also noted minimal distress in the crypto market, given the minor unrealized losses reported by investors.
Analyzing Market Dynamics
The analytics firm employed the MVRV Z-score, refined using a one-year rolling window, to assess whether Bitcoin is in a short-term bullish or bearish phase.
“The results indicate we are still in bullish territory, although it’s crucial to monitor the Short-Term Holder cost basis, which is $88.4k for maintaining positive market sentiment,” the firm added.
Glassnode explained that MVRV measures Bitcoin’s market value against its last movement price, helping to identify extreme pricing trends and historical averages.
When Will Bitcoin Reach Its Peak?
In their findings, Glassnode suggested that Bitcoin might peak at 2 standard deviations above the average price, remaining bullish as long as it stays above this average.
They clarified that trading below the mean and near 1.5 standard deviations indicates a bearish phase for Bitcoin.
The mean MVRV Z-score sits at $91,000, with predictions stating that if Bitcoin reaches 2 standard deviations above this figure, it would hit $113,000; conversely, 1.5 standard deviations below would line up with $75,000.
Thus, the analytics firm concludes that at $99,000, Bitcoin is still viewed as being in bullish territory.
As of the latest update, Bitcoin’s price stands at $102,242, with a market capitalization exceeding $2 trillion.
Image credit: Techpoint Africa, chart from TradingView