Here’s What’s Preventing Bitcoin From Entering Into the ‘Real Bull-Market Territory,’ According to IntoTheBlock
Crypto analytics firm IntoTheBlock says that key metrics show Bitcoin (BTC) is not in a full-on bull market.
IntoTheBlock says that Bitcoin’s current fundamentals are dissimilar from those during historical bull markets as the crypto king stalls around the $40,000 level.
“A lack of volume compared to previous bull markets, a limited decrease in long-term holders’ balance and a very modest MVRV (market value to realized value) ratio of 1.88, imply that Bitcoin is most likely suffering a temporary setback and is yet to enter the real bull-market territory.”
The analytics firm says Bitcoin holders are not behaving as would be expected during a bull market while “Bitcoin prices decreased about 10% in the past week, and even more since the approval of the Bitcoin ETF (exchange-traded fund).”
Says IntoTheBlock,
“Most of the addresses decreasing their balances are those that have held Bitcoin for one-12 months. At the same time, long-term holders haven’t been buying as strongly as they’ve done in the past months, with a slight decrease in overall Bitcoin held by this group.”
The firm’s MVRV chart shows a relatively low ratio compared to historic BTC bull markets.
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.
Bitcoin is trading for $40,674 at time of writing, down more than 3% in the last 24 hours.
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: Midjourney
The post Here’s What’s Preventing Bitcoin From Entering Into the ‘Real Bull-Market Territory,’ According to IntoTheBlock appeared first on The Daily Hodl.
Go to Source
Author: Daily Hodl Staff
