Bitcoin’s price has been a wild ride lately. After a big drop below $80,000, many are wondering if the bull run is over. But one analyst thinks there’s still room for a final surge.
A Look at the MVRV Ratio
An analyst on the CryptoQuant platform, using the handle Tarekonchain, points to the MVRV (Market Value to Realized Value) ratio. This ratio compares Bitcoin’s market cap to its realized cap (basically, what it cost to acquire all the Bitcoins in circulation).
A MVRV ratio above 1 means most Bitcoin holders are in profit. High MVRV ratios often signal price peaks because people tend to sell when they’re making money. Historically, Bitcoin peaked when the MVRV hit 3.5. This time, it only reached 2.7 before the price hit around $110,000.
Why Hope Remains for a Bitcoin Rebound
Tarekonchain argues that because the MVRV ratio didn’t hit its usual peak, Bitcoin might not be done climbing. While falling below the 365-day moving average is a bearish sign, the $65,000 support level could prevent a major crash. Even if it doesn’t bounce off exactly $65,000, that level is significant.
The analyst believes the MVRV needs to hit at least 3.0 to confirm a cycle top. If Bitcoin finds support and bounces back, a final peak between $120,000 and $130,000 is possible.
Current Bitcoin Price
At the time of writing, Bitcoin is trading around $85,000.
