2025 Bitcoin Outlook: Insights Backed by Metrics and Market Data
The post 2025 Bitcoin Outlook: Insights Backed by Metrics and Market Data appeared on BitcoinEthereumNews.com.
As we step into 2025, it’s time to take a measured and analytical approach to what the year might hold for Bitcoin. Taking into account on-chain, market cycle, macroeconomic data, and more for confluence, we can go beyond pure speculation to paint a data-driven picture for the coming months. MVRV Z-Score: Plenty of Upside Potential The MVRV Z-Score measures the ratio between Bitcoin’s realized price (the average acquisition price of all BTC on the network) and its market cap. Standardizing this ratio for volatility gives us the Z-Score, which historically provides a clear picture of market cycles. Figure 1: MVRV-Z Score shows we’re still a long way from a market cycle peak. View Live Chart 🔍 Currently, the MVRV Z-Score suggests we still have significant upside potential. While previous cycles have seen the Z-Score reach values above 7, I believe anything above 6 indicates overextension, prompting a closer look at other metrics to identify a market peak. Presently, we’re hovering at levels comparable to May 2017—when Bitcoin was valued at only a few thousand dollars. Given the historical context, there’s room for multiple hundreds of percent in potential gains from current levels. The Pi Cycle Oscillator: Bullish Momentum Resumes Another essential metric is the Pi Cycle Top and Bottom indicator, which tracks the 111-day and 350-day moving averages (the latter multiplied by 2). Historically, when these averages cross, it often signals a Bitcoin price peak within days. Figure 2: Macro trend remains bullish. View Live Chart 🔍 The distance between these two moving averages has started to trend upward again, suggesting renewed bullish momentum. While 2024 saw periods of sideways consolidation, the breakout we’re seeing now indicates that Bitcoin is entering a stronger growth phase, potentially lasting several months. The Exponential Phase of the Cycle Looking at Bitcoin’s historical price…
Filed under: News - @ January 3, 2025 2:26 pm