Markets
MVRV Ratio Tips Bitcoin Bull Run has room to grow
Cryptocurrency Market Forecast: The cryptocurrency market is witnessing a slow but steady recovery as leading digital assets Bitcoin (BTC) and Ethereum (ETH) take turns to bolster investor sentiment. The recent approval of Spot ETF on ETH has sparked new buying pressure in the altcoin market as CryptoQuant shed light on the ongoing dynamics of the Bitcoin market, suggesting that the bull run is far from over.
According to this renowned analytics firm, the market value to realized value (MVRV) ratio, a popular metric used to evaluate the profitability of Bitcoin holders, indicates that the market is still capable of seeing further increases.
THE #Bitcoin the bull market is not over yet
“In past bull markets, MVRV has peaked at 4.83 and 3.97, and currently has only reached 2.78. It has not yet entered the overvalued zone and further increases can be expected.” – From @DanCoinInvestor
Full article 👇https://t.co/UL5JxtScUZ
— CryptoQuant.com (@cryptoquant_com) May 28, 2024
Historically, during bull markets, the MVRV ratio has peaked at levels such as 4.83 and 3.97. However, the current MVRV ratio is only 2.78, suggesting that Bitcoin has yet to reach the overvalued zone typical of market peaks. This observation implies that there is potential for further upward movement in the market.
Read also: MicroStrategy CEO Michael Saylor Celebrates Bitcoin ETF Reserve Surpassing 1 Million BTC
1)Bitcoin (BTC)
The pioneering cryptocurrency Bitcoin has been steadily recovering since early May, when its price rebounded from $56,000. This recovery increased the value of the asset by 21.3%, which currently trades at $68,550.
Bitcoin (BTC)| Tradingview
According to data from CoinMarketcap, Bitcoin holds a market capitalization of $1.35 trillion and trading volume increased by 70% to reach $70 billion.
A daily chart analysis shows BTC price sustainability above $67500 with long-tail rejection candles. This strong demand pressure could create a new higher low, indicating that buyers are accumulating the asset on occasional dips, a key signal of a sustainable uptrend.
A potential bounce from this support will send the asset up 7.7% to a high of $73800.
Conversely, if sellers break the support trend line that supports the current recovery trend, the price Bitcoin it could trigger a new correction and retest $60,000.
2) Dogwifhat (WIF)
Dogwifhat (WIF) is a memecoin that operates on the Solana blockchain, gaining popularity for its community-driven nature and appeal of internet memes. Its mascot, a Shiba Inu dog wearing a pink hat, symbolizes the carefree and whimsical essence of many meme coins, similar to predecessors such as Dogecoin and Shiba Inu.
Dogwifhat (WIF)| Tradingview
In the last two months, the WIF price witnessed a lateral trend in the development of a symmetric triangle pattern. The two converging trend lines of this pattern were leading the asset into a tight space before it made a decisive upward turn.
On Monday, the coin’s price violated the pattern’s overall trend line, signaling the continuation of the prevailing uptrend. With an intraday gain of 9%, the Dogwifhat coin reached a trading price of $3.7, while its market value amounted to $3.69 billion.
If the bullish momentum persists, WIF price is likely to reach $4.86 by 30%.
Read also: The best Shiba Inu killers with which to diversify your holdings in the Memecoin wallet
3) Celestia (TIA)
Celestia (TIA) is a highly innovative blockchain network that stands out for its modular architecture, which allows for greater scalability and flexibility than traditional blockchain systems.
Celestia (TIA)| Tradingview
The prevailing correction trend in the TIA coin has stabilized above the psychological level of $8, shifting the downward trajectory sideways. A look at this daily chart shows the consolidation sandwiched between two converging trend lines that form an a symmetrical triangle pattern.
Amid the renewed market recovery, the Celestia coin rose for four consecutive days, increasing its value from $8.84 to $10.65, registering a 20% jump. With sustained buying, the price of the coin will break the overall trend line, signaling a major trend reversal.
The potential breakout will accelerate the bullish momentum and aim for higher targets at $12.8, followed by $15.5.
Key takeaway
BTC price has been trading sideways above $67,500 for over a week and has limited recovery momentum in most major altcoins. However, the broader trend remains bullish amid the Ethereum Spot ETF approval and growing market anticipation for Bitcoin’s post-Halving rally.
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