Bitcoin’s On-Chain Metric Signals Early Stages of Bull Market
Analytics firm Glassnode has revealed that Bitcoin’s long-term holder MVRV (LTH-MVRV) metric is showing signs of the early stages of a bull market. The LTH-MVRV has now entered high-risk territory, indicating the potential for significant market expansion.
Glassnode’s analysis suggests that when the LTH-MVRV signal surpasses the high-risk threshold, it typically precedes a surge in the market. Presently, the indicator stands at 2.06, a level commonly observed during the initial phases of bull markets. This serves as an indication that long-term investors are witnessing substantial profitability levels and are returning to the market.
Furthermore, Glassnode examines the Percent of Supply in Profit (PSIP) metric, which represents the proportion of coins that have a cost-basis lower than the current price. This particular metric is approaching a level that has historically signaled the “euphoric phase” of a bull market when it trades above its upper band. Notably, during the recent market rally associated with the spot ETF launch, the PSIP metric peaked before retracting.
Bitcoin is currently trading at $48,302, demonstrating a potential for further growth and bullish sentiment in the crypto market.
Stay tuned for more updates on Bitcoin’s on-chain metrics and market movements as we enter what could be an exciting phase for cryptocurrency investors.
Analyst comment
Positive news. The Bitcoin market is showing signs of early stages of a bull market, with both the LTH-MVRV and PSIP metrics indicating the potential for significant market expansion. This suggests that long-term investors are experiencing profitable levels and are returning to the market. With Bitcoin currently trading at $48,302, there is potential for further growth and bullish sentiment in the crypto market.
