The metrics suggest that Bitcoin is unlikely to be overvalued at current levels, and its price action is developing “steadily without significant anomalies or sharp jumps.”
Although Bitcoin’s price is yet to reclaim its March all-time high, an analyst claims two key metrics show that the bull market remains strong and steady with no signs of a deep correction.
In an Aug. 18 report, CryptoQuant researcher Axel Adler looked to two key metrics — the bubble vs. crush market structure and the ratio between the difference of market cap and realized cap and the standard deviation of market cap (MVRV-Z score) — as signals that Bitcoin’s current price action is tracking a healthy path forward.
“We can see that the current bull cycle is developing quite steadily without significant anomalies or sharp jumps,” Adler added.
