While Bitcoin has struggled to set a new all-time high for over six months, its MVRV ratio remains below past peaks, signaling potential for further gains.
According to a recent analysis by IntoTheBlock, Bitcoin exhibits signs of potential upside, regardless of ongoing bearish sentiment. The analysis highlights the importance of the MVRV (Market Value to Realized Value) ratio in gauging Bitcoin’s cycle top.
In the current market cycle, Bitcoin’s MVRV ratio peaked at 2.64 in March, a relatively low value compared to previous bull markets. Accordingly, the market intelligence platform suggested that Bitcoin’s rally may not be complete, with room for further upward movement before the market reaches a true top.
Historical MVRV Peaks
IntoTheBlock’s historical data reveals key insights into Bitcoin’s past performance. During the 2017 market cycle, the MVRV ratio reached a peak of 4.35, while the 2021 cycle saw a high of 3.7.
Hence, the current MVRV of 2.64 remains significantly lower, indicating that the cryptocurrency still has some distance to cover before reaching a cycle’s top comparable to previous cycles.
📊 Historical MVRV Insights:
2017 Peak: 4.35
2021 Peak: 3.7During the current cycle, MVRV peaked at 2.64, which seems relatively low to signal a market top. 🤔
🔍 What MVRV level are you keeping an eye on? pic.twitter.com/Vq2iViWEtp
— IntoTheBlock (@intotheblock) October 3, 2024
Whales Yet to See Massive Profit From Bitcoin
Another indication that Bitcoin’s top is not in yet may be seen via whale activity. The founder of CryptoQuant, Ki Young Ju, has observed that Bitcoin whales, particularly those holding large amounts of the cryptocurrency, have not yet seen substantial profits in this market cycle.
Many new whale wallets, including custodial wallets and ETF-related accounts, have shown limited gains. This suggests that these major holders are likely to continue holding rather than selling off their positions.
This accumulation of Bitcoin by whales further supports the notion that the market may have more room to grow. The whales are reportedly acquiring large quantities of Bitcoin through over-the-counter (OTC) markets, adding to the pressure on Bitcoin’s supply without contributing directly to the price volatility in exchanges.
At press time, Bitcoin is trading around $61,000, down by over 4% since this week.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
