As crypto bull Revival continues, Bitcoin has recorded a new all-time high (ATH) for $111,000 in the past week. Although the Prime Minister’s cryptocurrency has experienced some answers since then, largely due to the driving force behind the announcement of potential new trade tariffs by the U.S. government, investors remain bullish as the success of the previous ATH was recycled, indicating a continuation of the current uptrend.
Interestingly, crypto analyst Bilalhuseynov observed a rare development with market value to realized value ratio (MVRV), which suggests a positive difference with other people’s bull cycles.
In the new ATH, Bitcoin MVRV stays at 2.4 – What does this mean?
In a May 23 Quicktake post, Bilalhuseynov shared interesting insights into the Bitcoin market after recent chain development. It is worth noting that the Prime Minister’s cryptocurrency hit a new all-time high on May 22, ultimately confirming the effectiveness of the current bull cycle.
In this bullish development, Bilarkhosinov pointed to an unusual event as the MVRV ratio failed to reach the peak figure associated with Bitcoin’s new ATH set in previous bull markets. In the context, MVRV measures the market value of Bitcoin to the realized upper limit, i.e., the value of all Bitcoins at the last little purchase point. It is used to indicate a trend reversal, because the MVRV ratio above 1 indicates overestimation, while the graph below 1 indicates underestimation.
According to Bilalhuseynov, when Bitcoin received a new ATH in 2013, 2017 and Bull Cycles in 2021, the MVRV ratio reached its highest value between 3.5-4.0. However, after the $109,000 solar eclipse, the MVRV ratio peaked at 2.4. Crypto analysts explain that the reduction in the number of MVRVs compared to market caps may be related to a disproportionate increase in the achieved upper limit. This development can be attributed to the fact that a large number of recurrent bitcoins are exchanged at higher prices, resulting in higher costs.
Interestingly, Bilalhuseynov explained that this unusual development is a positive signal for Bitcoin’s long-term development, and even with stable markets at ATH prices, the stable market has less bubbles and no hype-driven overvaluation. Furthermore, it is possible that stronger market players (i.e., long-term holders and institutional holders) are part of the new investor, indicating long-term market confidence without the urgency of profitability.
BTC Price Overview
At the time of writing, Bitcoin has traded for $108,397 after the backtracking of the past few days. The Prime Minister’s cryptocurrency has fallen by 2.50% over the past day, but has increased by 17.65% over the past month.
Featured images from Pexels, charts for TradingView
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