- Bitcoin (BTC) could be approaching a “euphoric bull” phase, according to a popular on-chain analyst.
- The pseudonymous analyst known as Checkmate tells his 91,100 followers on the social media platform X that BTC is approaching a “decision point.”
- “Bitcoin breaking to a new ATH (all-time high) has historically represented a transition point from the Enthusiastic Bull, into the Euphoric Bull. It also coincides with the MVRV (market value to realized value) ratio getting above 1 standard deviation, but we rarely clear it on the first attempt.”
Bitcoin is nearing a critical decision point, potentially entering a euphoric bull phase, as indicated by key on-chain metrics and market analysis.
Bitcoin Approaching Euphoric Bull Phase
Bitcoin (BTC) is on the verge of entering a euphoric bull phase, according to the well-known on-chain analyst, Checkmate. The analyst, who has a significant following on the social media platform X, suggests that BTC is nearing a crucial decision point. Historically, breaking to a new all-time high (ATH) has signified a shift from an Enthusiastic Bull phase to a Euphoric Bull phase. This transition is often accompanied by the MVRV (market value to realized value) ratio exceeding one standard deviation, although it rarely does so on the first attempt.
Understanding the MVRV Ratio
The MVRV ratio is a critical metric in the cryptocurrency market, used to evaluate whether Bitcoin is undervalued or overvalued. It compares Bitcoin’s market capitalization to its realized capitalization, which is the value of all BTC at the prices they were purchased. This ratio provides insights into market sentiment and potential price movements. Checkmate acknowledges the unpredictability of the exact timing of this transition, emphasizing that it depends on capital inflows, which currently appear robust.
Current Market Dynamics
Checkmate also highlights that the ongoing Bitcoin bull market is more structured compared to the 2021 bull run. He draws parallels to the 2016/17 bull market, describing the current market as spot-driven and resilient. This structured growth is seen as a positive indicator for Bitcoin’s price action. As of the time of writing, Bitcoin is trading at $69,815, showing a nearly 2% increase in the past 24 hours and a 14% rise over the past seven days.
Conclusion
In conclusion, Bitcoin’s approach to a euphoric bull phase is supported by key on-chain metrics and market analysis. The MVRV ratio and current market dynamics suggest a structured and resilient bull market, reminiscent of the 2016/17 period. Investors should remain vigilant and prepared for potential market shifts, as the exact timing of these transitions remains uncertain. The ongoing analysis and insights from experts like Checkmate provide valuable guidance for navigating the evolving cryptocurrency landscape.
