• Bitcoin is in the early stages of a new bull market according to analysis of a technical indicator called the Market Value to Realized Value Ratio (MVRV Ratio).
• The MVRV Ratio and its associated Z-score both recently hit their highest levels since last April, signaling that Bitcoin has entered into the early stages of a bull market.
• Historically, when the MVRV Ratio has risen back above 1.0 on a sustained basis it has acted as a great buy signal for investors.
Bitcoin in Early Stages of New Bull Market
Bitcoin is in the early stages of a new bull market according to analysis of a widely followed technical indicator called the Market Value to Realized Value Ratio, or MVRV Ratio.This ratio, which is calculated by dividing Bitcoin’s current market capitalization by its market capitalization at the realized price (i.e. the average price at which each individual Bitcoin token last moved), recently hit 1.48, its highest level since last April.It rose back above 1 this January for the first time since November 2022 and has been rising ever since given the ongoing rise of the Bitcoin price.As can be seen in the above graph, falling below 1.0 has historically happened during late stages of a bear market – indicating that Bitcoin has entered into an early stage bull market now that it’s back above 1 again.
MVRV Z-Score Sending Even More Convincing Bull Sign
Glassnode’s preferred MVRV-related indicator to monitor is its Z-score – calculated by subtracting Bitcoin’s market cap from its realized cap and then dividing by standard deviation of Bitcoin’s market cap throughout history; which recently reached 0.71 on Monday – having risen back above zero earlier this year along with other metrics suggesting an upturn in prices and signifying that we are indeed looking at an emerging bullish trend now taking form in markets today!
How High Can BTC Prices Rise This Bull Market?
Assuming that we are indeed seeing signs suggesting that a new bull run may have kicked off here, investors will most likely be assessing how high prices could rise over upcoming years so they know when best to take profit from their investments: Glassnode presents us with useful chart showing where prices would be if MVRV Ratio was 2.4 – currently around $47k but could reach up to $60k should ratio reach 3/4 mark historically seen during most intense points within previous cycles!
What Does This Mean For Investors?
These developments represent good news for long term investors who were waiting patiently for another chance to get involved with bitcoin: With indicators sending strong signals towards bullishness ahead there might not be many better entry points than right now before things potentially start moving too quickly beyond our control!
The current upturn being witnessed across several metrics indicate that we may well be entering into another long awaited bitcoin bull cycle here – giving us all yet another opportunity to potentially make some decent returns over upcoming years depending on how situation develops going forward!