Bitcoin

Ethereum

Memetic / PepeCoin

Shiba Inu

Bald

Introduction:In the world of cryptocurrency, skepticism and fear of uncertainties are common. However, ignoring fundamental on-chain data would be a mistake. Let&#39;s examine two crucial on-chain datasets, the MVRV (Market Value to Realized Value) and Average Realized Price, to gain insights into Bitcoin&#39;s current market phase.<h3 id="short-term-supply-groups-1-day-to-6-months">Short-Term Supply Groups (1 day to 6 months):</h3>a. Historical Bear Market Behavior:During bear markets, #Bitcoin market price consistently remains below the 1D-6M Average Realized Price, acting as absolute resistance. Conversely, during recovery phases transitioning to a bull market, this level becomes a solid support, aiding in price recovery.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/f4c64967493f43718c88a83e1f8b9057.jpeg" />b. Short-Term MVRV (1D-6M) Indicator:The Short-Term #MVRV (1D-6M) acts as the boundary between bullish and bearish sentiment. Whenever Bitcoin&#39;s price approaches this indicator, positive responses are observed, reinforcing its significance in price movements.<h3 id="medium-term-supply-groups-6-months-to-2-years">Medium-Term Supply Groups (6 months to 2 years):</h3>a. Confirming Bull Market Phases:Similar to short-term analysis, the Medium-Term Average Realized Price plays a crucial role in confirming bull markets. For Bitcoin to enter a #BullMarket officially, it requires a sufficient accumulation period to gather momentum and break through this mid-term resistance.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/342804ca64234d8dbe0859b9696b6108.jpeg" />b. Medium-Term MVRV (6M-2Y) Indicator:As with its short-term counterpart, the Medium-Term MVRV (6M-2Y) indicator serves as the boundary separating bearish and bullish conditions.<h3 id="current-market-analysis">Current Market Analysis:</h3>At present, we observe similarities between the current market phase and the recovery phase around late 2015 and early 2016. For Bitcoin to solidify its return to a bull market, it needs a prolonged accumulation period to overcome the medium-term average realized price resistance.<h3 id="on-chain-data">On-Chain Data:</h3><ol><li>Short-Term Supply Group Data:</li></ol><ul><li>STH Avg Realized Price: $28,000</li><li>STH MVRV: 1.04</li></ul><ol><li>Medium-Term Supply Group Data:</li></ol><ul><li>Medium-term Avg Realized Price: $30,300</li><li>Medium-term MVRV: 0.96</li></ul>Conclusion:Considering the historical behavior of Bitcoin&#39;s market phases based on the MVRV and Average Realized Price, the current data indicates a potential recovery phase and an impending return to the bull market. However, a sustained accumulation period is necessary to gain enough momentum to overcome the medium-term resistance. Monitoring short-term data for positive responses can provide additional insight into Bitcoin&#39;s price movements during this crucial juncture. As always, on-chain data should not be ignored as it provides valuable insights into the cryptocurrency market&#39;s underlying fundamentals.Follow us for More Quality Analysis.Thank you.Source:- CryptoQuant#googleai#Binance$BTC $ETH $SOL

On-Chain Data Insights: Bitcoin's Recovery Phase and Bull Market Confirmation

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Crypto Patel

2023년 8월 1일에 게재된 다른 기사

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