Bitcoin (BTC) may be approaching a “euphoric bull period” according to a popular on-chain analyst.
A pseudonymous analyst known as Checkmate told his 91,100 followers on social media platform X that BTC is nearing a “decision point.”
“Bitcoin breaking through a new ATH (all-time high) historically represents a transition point from a frenzied bull market to a euphoric bull market.
This also corresponds to an MVRV (market value to realized value ratio) of more than one standard deviation, but it is unlikely to clear that on the first try. ”
MVRV is the ratio of Bitcoin's market capitalization to its realized market capitalization (the value of all BTC at the purchase price). It is used to assess whether a crypto asset is undervalued or overvalued.
Checkmate acknowledges that it's impossible to know when that transition point will occur.
“I don't have a view on that because we don't know. It depends entirely on capital inflows, and capital inflows are looking pretty healthy at the moment. So now could be the time. There is…but we have to read the tape in the moment. Predictions are not very useful, so instead we have a reaction function, not what will happen, but what will happen when it happens. What you do is important.”
The analyst also said that the ongoing Bitcoin bull market is “much more structured” than the 2021 bull market.
“It's very similar to 2016/17. It's spot-driven and resilient. It's really impressive. I really like what we're seeing with this price action.”
At the time of writing, BTC is trading at $69,815. The top crypto asset by market cap is up around 2% in the past 24 hours and around 14% in the past seven days.
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