Bitcoin On-Chain Signal of Early Stage Bull Markets Now Showing Up, Says Analytics Firm Glassnode
Analytics firm Glassnode says that an on-chain metric for Bitcoin (BTC) that has historically signaled the early stages of a bull market is showing up on the radar.
According to Glassnode, Bitcoin’s long-term holder MVRV (LTH-MVRV), which tracks the behavior of long-term BTC investors, has entered “high-risk” territory.
The analytics firm shares a chart that suggests BTC tends to witness a significant market expansion when the LTH-MVRV signal hovers above the high-risk area.
“After the challenging recovery since the FTX collapse, this indicator has advanced to 2.06, entering the high-risk regime.
These levels are typically seen during the early stages of bull markets, as long-term investors return to a relatively meaningful level of profitability.”
Glassnode also looks at its Percent of Supply in Profit (PSIP) metric, which measures the proportion of coins with a cost-basis lower than the current spot price. According to the firm, the metric suggests that BTC is perhaps a few thousand dollars away from putting Bitcoin into a “euphoric phase” of the bull market.
“When this indicator trades above the upper band, it has historically aligned with the market entering the ‘Euphoric Phase’ of a bull market. During the recent market rally around the spot ETF (exchange-traded fund) launch, this metric reached the very high risk, which was followed by a contraction down to $38,000.”
At time of writing, Bitcoin is trading at $48,302.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: DALLE3
The post Bitcoin On-Chain Signal of Early Stage Bull Markets Now Showing Up, Says Analytics Firm Glassnode appeared first on The Daily Hodl.
Go to Source
Author: Alex Richardson
