• Bitcoin’s January price rally has returned the market to profitability.
• Technicians view a break above the Realized Price as a signal of a meaningful shift in medium-term momentum.
• Analysts at Glassnode present advanced models that look at the differential between the Bitcoin price and Realized Price to determine whether the market is reaching a top or bottom.
Bitcoin Market’s Return to Profitability
The Bitcoin market has seen a return to profitability after its January price rally, with BTC last priced around $23,500, above its Realized Price of $19,850. This break above Realized Price is viewed by technicians as an indicator of a change in medium-term momentum for Bitcoin.
Advanced Metrics Suggest Positive Outlook
Analysts at Glassnode have presented more advanced metrics which examine the relationship between the spot and Realized Prices in order to gauge whether the market is at an extreme top or bottom, or about to enter into a prolonged bull or bear market. The MVRV Ratio recently recovered back above 1.0 after falling below 0.8 during 2020’s selloff – suggesting that BTC may be entering into a long-term bull trend once again.
Price Bands Show Long-Term Bull Trend Potential
The MVRV ratio can also be visualized through plotting bands on charts alongside Bitcoin’s spot and realized prices – when these bands fall back down to 0.8 or less of its realized price, it has been historically viewed as an excellent opportunity for long-term bulls looking for entry points into BTC markets.
Realized Cap Shows Increased Interest
The increased interest in Bitcoin can also be seen in another metric known as “Realised Cap” – this measures how much money was spent buying BTC since it was first mined and takes into account all transactions sent onchain since 2009 (minus any coins lost). This metric shows that investors are willing to put more money into Bitcoin than ever before – suggesting that we are likely seeing only the beginning of another major bull run for BTC markets over the coming years.
In conclusion, it appears that advanced metrics such as MVRV Ratio, Price Bands and Realised Cap suggest that we could be seeing yet another long-term bull trend for BTC markets over the coming years – providing both retail investors and institutional players alike with yet another opportunity to get involved in one of history’s most lucrative asset classes