Bitcoin Bull Market “Not over,” Analyst Claims Despite Recent Volatility
New York, NY – June 17, 2024 – Despite a turbulent week that saw Bitcoin (BTC) experiance significant price swings, a leading analyst argues teh cryptocurrency’s bull market remains firmly intact. bitcoin briefly surged past $112,000 in early trading Monday, a recovery following a sharp dip last week that triggered substantial liquidations across the crypto market. As of this writing, Bitcoin is trading at $111,835, according to CoinGecko.
The recent volatility, which saw Bitcoin fall as low as $109,000, initially sparked concerns of a potential market correction. However, new analysis from XWIN Research Japan, published in a CryptoQuant note on Sunday, suggests these fears may be premature.
“While recent volatility has unsettled traders,on-chain data continues to suggest that Bitcoin’s bull market is not over,” the report states.
Key Indicators Point to Continued Growth
XWIN’s optimistic outlook is based on two key on-chain metrics: long-term holder behavior and Bitcoin’s Market Value to Realized Value (MVRV) ratio. The MVRV ratio compares Bitcoin’s current market capitalization to the average purchase price of existing holders.
Currently,the MVRV ratio has fallen to 2,indicating that the average investor is still holding substantial gains – with their average cost basis roughly half of Bitcoin’s current price. Historically, XWIN notes, this level doesn’t signal either panic selling or excessive exuberance.
“investors are still sitting on healthy gains, yet the market has cooled from overheated conditions,” the report explains. “Past cycles have seen Bitcoin enter it’s strongest expansion phase after consolidating in this MVRV range.”
Moreover, the firm observed a decrease in profit-taking among long-term holders, which effectively reduces the available supply and could pave the way for renewed price increases.
(see chart: Bitcoin’s MVRV ratio (purple) compared to its price (black) since late 2024. Source: CryptoQuant)
Liquidations Follow Price Dip
The analysis comes after a week of significant pain for crypto traders. Over $4 billion in long positions were liquidated in two major events triggered by Bitcoin’s price decline. These liquidations represent a substantial blow to leveraged traders betting on continued price increases.
Despite the recent setbacks,XWIN Research Japan believes the current consolidation period is a healthy phase in the bull market,laying the groundwork for the next significant upward movement.
The Bottom Line: While Bitcoin’s price action remains volatile, on-chain data suggests the underlying fundamentals remain strong, and the long-term bullish trend might potentially be far from over. Investors will be closely watching these key indicators in the coming weeks to gauge the future direction of the cryptocurrency.
SEO Considerations:
* Keywords: Bitcoin, BTC, bull market, crypto, cryptocurrency, MVRV, on-chain analysis, liquidation, volatility, price prediction, XWIN Research, CryptoQuant.
* Meta Description: Is the Bitcoin bull market over? New analysis suggests despite recent volatility and $4 billion in liquidations, on-chain data points
