Bitcoin (BTC) managed to remain very stable at around $30,000 between May and early June, however this changed on June 10 when the market collapsed hard. In a very short time, the price managed to fall towards $17,600 and has set the bottom here so far.
Last week we saw similar price action as before, with the price now hovering sideways around $20,000 very stable. However, here we see some key levels that need to be broken before we can even think about another bull cycle.
We also see that bitcoin for the third time in a row a weekly candle closed under 200 days moving average† The first candle to close below from the first time since 2020 we saw this happen. This is also the first time it has happened three times.
On-chain bitcoin data: end of bear market in sight
According to a trader on CryptoQuant, BTC is undervalued when looking at the Market Value To Realized Value (MVRV) metric ratio† It fell below a certain level for the first time since the corona crash.
The trader on CryptoQuant has indicated that we are in the late phase of a bear market. “A new bullish cycle is expected by the time this capitulation phase among retailers and long-term holders comes to an end.” he said.
“The market has recently experienced a steep crash and has retested its previous record once. As a result, the MVRV statistic has fallen below the 1 level for the first time after the Covid crash and the mass capitulation, while the market momentum is not encouraging.” he added.
The MVRV is the ratio of a coin’s market value to its realized market value. With this metric a trader can determine whether a cryptocurrency undervalued or not. With this, a trader can also make an estimate of the market and see whether the traders are buying or selling on the market.