Cryptocurrency analytics firm IntoTheBlock says key metrics show that Bitcoin (BTC) is not in a full-blown bull market.
IntoTheBlock He says Bitcoin’s current fundamentals differ from those during historical bull markets where the crypto king stalls around the $40,000 level.
“The lack of volume compared to previous bull markets, limited decline in long-term holder equity and a very modest MVRV (Market to Realized Value) ratio of 1.88 suggest that Bitcoin is most likely suffering from a temporary setback that has not yet been remedied. To enter True bull market zone.
Analytics company He says Bitcoin holders do not behave as expected during a bull market while “Bitcoin prices are down about 10% in the past week, and even more since the Bitcoin ETF (exchange-traded fund) was approved.”
He says in TheBlock,
“Most of the addresses reducing their balances are those that have held Bitcoin for between one and 12 months. Meanwhile, long-term holders have not been buying as aggressively as they have in recent months, with a slight decline in the total Bitcoin held by this group.
The company’s MVRV chart shows a relatively low percentage compared to historical BTC bull markets.
The MVRV is the ratio of an asset’s market capitalization to its realized market value — the value of all bitcoins at the price they were purchased at, not the current price — and seeks to capture the market’s lows and highs.
Bitcoin is trading at $40,674 at the time of writing, down over 3% in the past 24 hours.
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