Bitcoin (
BTC
) may be entering a phase of extreme bullishness, according to a well-known analyst who specializes in on-chain analysis. Going by the pseudonym Checkmate, the analyst informed his 91,100 followers on the social media platform X that BTC is approaching a critical point in its trajectory. He stated, “When Bitcoin reaches a new all-time high, it typically signifies a shift from an enthusiastic bull market to a euphoric bull market. This also coincides with the MVRV (market value to realized value) ratio surpassing one standard deviation, although it is uncommon to clear this threshold on the first attempt.” Checkmate attached a graph to support his analysis.
The MVRV ratio is a measure of Bitcoin’s market capitalization relative to its realized capitalization, which is the value of all BTC at the price they were purchased. This ratio is used to determine whether the cryptocurrency is currently overvalued or undervalued.
While Checkmate admitted that he cannot predict exactly when this transition will occur, he noted that capital inflows, which currently appear to be robust, will play a crucial role. He stated, “I don’t have a specific viewpoint on the timing, as it is impossible to know for certain. It depends entirely on capital inflows, which are currently looking quite healthy. Therefore, it is possible that the transition is imminent… but we must monitor the situation closely. Making predictions is not particularly useful; instead, I focus on preparing my reaction strategy. It is not about what will happen –> it is about how you will respond when it does.”
The analyst also remarked that the ongoing Bitcoin bull market is exhibiting a greater level of structure compared to the bull run in 2021. He described it as being more similar to the market conditions in 2016 and 2017, where the price was driven by spot trading and exhibited resilience. He expressed his enthusiasm, stating, “It’s simply fantastic. I am thrilled by the current price action.”
At the time of writing, BTC is trading at $69,815. The cryptocurrency, which holds the top position in terms of market capitalization, has experienced a nearly 2% increase in the past 24 hours and a nearly 14% increase in the past week.
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