Bitcoin Could Enter “Euphoric Bull” Phase
A popular on-chain analyst known as Checkmate suggests that Bitcoin could soon enter a “euphoric bull” phase. He points to a critical “decision point” that Bitcoin is nearing, which could potentially lead to a new all-time high (ATH). This transition from an Enthusiastic Bull phase to a Euphoric Bull phase often coincides with the MVRV (market value to realized value) ratio exceeding one standard deviation. However, such breaks rarely succeed on the first attempt.
The Significance of the MVRV Ratio
The MVRV ratio is a metric used to assess whether Bitcoin is undervalued or overvalued. It compares the market cap of Bitcoin to its realized capitalization. Checkmate highlights that this ratio reaching a certain threshold is a crucial factor in determining the transition to a Euphoric Bull phase. However, predicting the exact timing of this transition is challenging as it depends on capital inflows, which currently appear to be healthy. Checkmate advises followers to focus on preparing a reaction strategy rather than making predictions.
Comparisons to Previous Bull Runs
Checkmate notes that the current Bitcoin bull market is more structured and spot-driven, similar to the 2016/17 bull run. It is not as volatile as the 2021 bull run, which experienced significant price fluctuations. This observation suggests that Bitcoin’s current uptrend may have more stability and sustainability compared to previous periods of growth.
Current Bitcoin Price
At the time of reporting, Bitcoin is trading at $69,815. It has seen a nearly 2% increase in the past 24 hours and a 14% increase in the past seven days. This positive price movement aligns with the possibility of Bitcoin entering a Euphoric Bull phase, as suggested by Checkmate’s analysis.
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