Market Analysis Shows Bitcoin Bull Run May Not Be Over
Despite Bitcoin’s recent pullback below $80,000, on-chain data suggests the current bull cycle may still have significant upside potential. According to a detailed analysis from CryptoQuant, a key indicator points to possible price targets as high as $130,000.
The analysis centers on the Market Value to Realized Value (MVRV) ratio, a crucial metric that has historically signaled market tops. While recent market turbulence has sparked concerns, the data reveals an intriguing possibility for further upside.
Understanding the MVRV Indicator
The MVRV ratio measures Bitcoin’s market capitalization against its realized capitalization, effectively gauging whether the cryptocurrency is overvalued or undervalued. Historical data shows that:
- Previous bull cycles peaked when MVRV crossed 3.5
- Current MVRV stands at only 2.7
- A minimum reading of 3.0 is needed to confirm cycle top
Key Support Levels and Price Targets
While Bitcoin has experienced significant volatility, several critical support levels remain intact:
- Primary Support: $65,000
- Current Price: $85,000
- Potential Peak: $120,000-$130,000
Expert Analysis and Market Implications
CryptoQuant analyst Tarekonchain suggests that while the recent dip below the 365-day moving average is bearish, it may present a buying opportunity. The current market structure shares similarities with previous bull cycles that saw significant continuation after similar pullbacks.
“The data suggests we’re not yet at the cycle top,” explains Tarekonchain. “Historical patterns indicate potential for a final surge before a true market peak is established.”
Looking Ahead: Key Metrics to Watch
Investors should monitor several indicators to validate this thesis:
- MVRV ratio progression toward 3.0-3.5 range
- Daily active addresses and transaction volume
- Exchange inflow/outflow ratios
- Long-term holder behavior
Source: NewsbtC