• Bitcoin’s Realized Price recently crossed above the $19,850 mark, a signal of a meaningful shift in the market’s medium-term momentum.
• Glassnode presents metrics such as the Market Value Realized Value (MVRV) Ratio which measure the differential between the Bitcoin price and Realized price to determine whether the market is reaching a top or bottom.
• The MVRV ratio recently recovered back above 1.0 after falling below 0.8, suggesting that the medium-long term outlook for Bitcoin is looking good.
Bitcoin Market Signals Bullish Momentum
The Bitcoin market’s return to profitability in 2023 has been widely followed on-chain, with prices last at around $23,500 – well above the so-called „Realized Price“ of $19,850. This break above Realized Price signals a meaningful shift in the market’s medium-term momentum and suggests that Bitcoin could be poised for further gains.
Glassnode’s MVRV Ratio Indicator
To gain further insight into this potential bull run, analysts at Glassnode have developed an advanced metric called Market Value Realized Value (MVRV) Ratio – A ratio between current spot price and Realized Price. They then introduce ratio levels that they deem as suggesting extreme strength or weakness in the market: 0.8 and 1.0 are seen as extremely weak while 2.4 and 3.2 are seen as extremely strong.
MVRV Ratios Suggest Positive Outlook
Recent MVRV ratios show that after dropping below 0.8 in wake of FTX collapse last year – a sign of extreme market weakness – it has since recovered back above 1.0, suggesting that Bitcoin may soon embark on an extended bull run over its medium to long term outlook.. Additionally, when plotted on the chart alongside Bitcoin’s spot and Realized Price levels of 0.8 below and 2.4 & 3.2 times above can be used to visualize when this ratio is at extremes .
Technical Analysis Can Be Used To Gauge Market Direction
For traders who want to take advantage of these insights from technical analysis, there are several tools available to help them gauge where exactly the market might be headed next – looking for signs of continued bullishness or bearishness over time periods shorter than what Glassnode’s MVRV Ratio measures out to be more useful for day trading strategies rather than longer term investing plans .
Conclusion
Ultimately, while no one knows exactly where this bull run will take us next – it appears that both fundamentals and technical indicators are pointing towards positive outlook over medium-long term period ahead . As always though it pays off to do your own research before making any investments!