- Bitcoin’s recent performance indicates a potential for further gains.
- Long-term holders have shown reduced activity, suggesting confidence in future price increases.
- Crypto analyst Axel Adler highlights that the current bull run may only be halfway through.
Explore the current state of Bitcoin’s bull run and what it means for investors.
Bitcoin’s Bull Run: Are We Only Halfway Through?
Bitcoin has recently experienced a significant breakout, surpassing the $67k resistance level. The bullish momentum peaked at $72k on May 21st, but has since retraced by 5.7%, currently trading at $67.8k. Despite this dip, the long-term outlook remains positive, with many analysts suggesting that the bull run is far from over.
Market Value to Realized Value (MVRV) Z-Score
The MVRV Z-score is a critical metric used to assess whether Bitcoin is overvalued or undervalued by comparing its market value to its realized value. Historically, an MVRV Z-score of 7 or above has marked the peak of previous cycles. Currently, the MVRV Z-score stands at 3.07, indicating that there is still significant room for growth before reaching a potential top.
Long-Term Holders’ Activity
Data shows that Bitcoin holders aged six months and above have shown reduced activity over the past two months. This trend suggests that long-term investors are holding onto their assets, anticipating further price increases. On February 28th, there was notable activity within the 3-6 month age band, indicating profit-taking from this group. However, most older holder groups have not engaged in significant selling, likely due to expectations of a post-halving price rally.
Conclusion
In summary, Bitcoin’s recent performance and the behavior of long-term holders suggest that the current bull run is still in progress. The MVRV Z-score indicates that there is potential for further price gains, and the reduced activity among long-term holders reflects confidence in future growth. Investors should keep a close eye on these metrics to make informed decisions in the coming months.
