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Bitcoin, the world's largest cryptocurrency by market cap, may be set for an extended bull run, according to a prominent crypto analyst. This forecast comes amid a recent period of relatively stable prices for BTC, hovering around the $30,000 mark.
The analyst's prediction is based on an interpretation of the Long Term Holder (LTH) MVRV indicator, a metric that aims to identify potential cycle-reversal points for Bitcoin. The MVRV ratio, or Market-Value-to-Realized-Value ratio, compares the market value of all coins in circulation to the realized value of all coins in circulation.
Just getting started$BTC pic.twitter.com/jcXJzASDl4
— Will Clemente (@WClementeIII) July 3, 2023
The LTH version of this indicator specifically focuses on coins held for a longer period, offering insights into the behavior of long-term investors.
According to the analyst, the current readings of the LTH MVRV suggest that the bull run for Bitcoin is far from over. This indicator has historically proven reliable in predicting market tops and bottoms. As it stands, the LTH MVRV does not show signs of overheating, indicating that there may still be room for upward movement in the BTC price.
Further supporting this bullish forecast is the decreasing liquidity of Bitcoin on centralized exchanges. The number of BTC held on exchanges has been on a consistent decline, hinting at a shift in investor behavior. As more people move their Bitcoin off exchanges and into private wallets, the available supply for trading decreases. This reduction in exchange liquidity is typically considered a bullish factor.
The combination of a favorable LTH MVRV reading and decreasing exchange liquidity suggests that Bitcoin could be on the verge of another rally. However, investors should bear in mind that while these indicators provide helpful insights, they do not guarantee future price movements.
Gamza Khanzadaev
Dan Burgin
Alex Dovbnya