CryptoQuant has reported that Bitcoin’s MVRV with MA30d has entered the Accumulation Zone (green quadrant) below the 1.44 value since the cryptocurrency broke through the $30,000 range in mid-May 2022.
This indicator has reached as high as 0.82 in December 2022 when Bitcoin was still quoted around $17,000, which is the first time in over 330 days that the indicator quotes above the Accumulation Zone, followed by a recovery in the price of Bitcoin up to $31,000.
This downward trend in MVRV indicates decreased selling pressure, which means that the realized capitalization exceeds market capitalization, leading to a decreasing motive to sell Bitcoin. The last time MVRV hit 0.82 was in 2018 when Bitcoin dropped -50% and reached around $3,200.
According to CryptoQuant’s analysis, there is still room for the Bitcoin price to recover, causing MVRV to reach the yellow line (intermediate region – trend transition phase) around 2.10. By projecting the market behavior of the last bear market in 2018, the Bitcoin price later this year 2023 has great chances to reach $45,000 and build a bullish structure transitioning between the bear market to a new bull market.
It is worth noting that historically, MVRV has been an excellent indicator to detect major top/bottom or the local top/bottom that occurred in the trend transition phase. Therefore, the probability of new highs in 2023 is still there, and new opportunities for long-term investments could appear again before the next Halving in 2024.
This news brings a ray of hope to Bitcoin investors who have been waiting for the cryptocurrency to recover from its bearish state. With this positive trend, investors may be looking forward to the potential for growth in the cryptocurrency market. However, it is important to note that cryptocurrency investments are volatile and subject to various market risks. Therefore, investors should always approach these investments with caution and conduct thorough research before investing their funds.
Read more:
- Technical And On-Chain Factors Support Bitcoin Market Structure Amid Price Correction
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