Bitcoin

when

Arthur

April

Bitcoin&nbsp;could be entering into an attractive buy zone according to two popular metrics used by cryptocurrency analysts to track on-chain trading activity.
The market value to realized value (MVRV) and open interest (OI) weighted funding rate metrics could suggest Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>)&nbsp;is at an attractive entry point for traders.
“This is the best moment to buy Bitcoin,” pseudonymous trader Mister Crypto told his 94,100 X followers in an April 23 <a href="https://twitter.com/misterrcrypto/status/1782691630832914803" target="_blank" rel="noopener nofollow">post</a> on X.
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 <img src="https://s3.cointelegraph.com/uploads/2024-04/31bbf706-0d00-4226-bce7-896056087e38.png" alt="" title="">
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 Bitcoin’s price is $64,230 at the time of publication. Source: CoinMarketCap
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Bitcoin’s OI weighted funding rate — which represents the cost of holding Bitcoin futures positions — breached positive territory on April 24 after 24-hours in the negative zone, posting 0.0093%, <a href="https://www.coinglass.com/currencies/BTC" target="_blank" rel="noopener nofollow">according</a> to CoinGlass data.
Despite the upswing, it is still significantly lower than the 0.0714% recorded at the beginning of April, a correction that analysts view as favorable for the market.
“One of the healthiest market resets I have seen in a long time,” on-chain analyst Checkmate declared in an April 24 <a href="https://twitter.com/_Checkmatey_/status/1783034015982956875" target="_blank" rel="noopener nofollow">post</a>.
“Rates holding strong. Bitcoin ready for liftoff,” Crypto Banter host Kyle Doops added in an April 24 <a href="https://twitter.com/kyledoops/status/1783118973560864983" target="_blank" rel="noopener nofollow">post</a>.
Related: <a href="https://cointelegraph.com/news/1m-bitcoin-price-still-in-play-macro-liquidity-arthur-hayes">$1M Bitcoin price still in play amid ‘macro liquidity surge’ — Arthur Hayes</a>
The higher funding rates signal increased interest in long trades, reflecting a more bullish sentiment in the market.
The last time Bitcoin’s OI-weighted funding rate peaked significantly in early March, Bitcoin reached an all-time high of $69,200 on the same day. 
Just a week later, on March 14, it surpassed that milestone again, climbing to $73,835, <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener nofollow">per</a> CoinMarketCap data.
However, founder of the Capriole Investments fund, Charles Edwards, told Cointelegraph that while funding rates are a good indicator “broadly speaking,” it no longer carries the same level of certainty as it did a few years ago.
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 “2018 through 2020 and 2021, that sort of three-year window, it wasn’t talked about much. It wasn’t understood, and it was a hundred percent hit rate metric, where if it went negative, it was almost a hundred percent guaranteed; if you went long, you would make money.”
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Although now there are “so many more parties involved, it’s a bit more of a complex metric to consider,” according to Edwards.
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 <img src="https://s3.cointelegraph.com/uploads/2024-04/86d9250e-17d8-4fe5-84bd-b166ccede54f.png" alt="" title="">
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 Bitcoin’s OI-weighted funding rate has declined significantly since the start of April. Source: CoinGlass
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Meanwhile, the MVRV indicator — which aims to identify when Bitcoin is over or undervalued relative to its fair value — also suggests Bitcoin has headed further into favorable buying conditions.
At the time of publication, Bitcoin’s MVRV score is 2.32, down 6.45% since the start of April, <a href="https://www.lookintobitcoin.com/charts/mvrv-zscore/" target="_blank" rel="noopener nofollow">according</a> to LookIntoBitcoin data.
An MVRV score above 3.5 suggests that the market is almost at its peak, whereas a score below one indicates that it has bottomed out.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-04/e862a033-4010-4efe-8db1-89117b86b84c.png" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin’s MVRV score has dropped 6.45% since the start of April. Source: LookIntoBitcoin
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Edwards pointed out that the current MVRV levels indicate “we’ve got quite a bit of leeway over the next year.”
However, he explained that the current buying opportunity is far less lucrative compared to those available as recently as two years ago.
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 “It’s not a deep value opportunity that it was a year ago or two years ago when it was way lower. But it’s also not screaming ‘overvaluation,’ which is four or five or six.”
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Magazine: <a href="https://cointelegraph.com/magazine/get-bitcoin-or-die-tryin-why-hip-hop-stars-love-crypto/">Get Bitcoin or die tryin’: Why hip hop stars love crypto</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

2 on-chain metrics suggest Bitcoin at its ‘best moment to buy’

Cointelegraph

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