These Metrics Suggest Bitcoin Still Has Room for Growth, According to Glassnode Founder
The post These Metrics Suggest Bitcoin Still Has Room for Growth, According to Glassnode Founder appeared on BitcoinEthereumNews.com.
Bitcoin (BTC) is currently worth around $94,000 after trading above $108,000 earlier this week. While traders continue to take profits, analysts believe the cryptocurrency still has room for growth. According to an X thread by Rafael Schultze-Kraft, the co-founder of the on-chain market intelligence platform Glassnode, over 20 charts and metrics suggest BTC has yet to form its top for this cycle. More Room for Growth The Market Value to Realized Value (MVRV) metric, which measures unrealized profitability, is currently hovering around 3. Historically, this indicator has signaled overheating above 7; hence, there is still room for BTC to grow. Also, the top MVRV Pricing Band, which is obtained from calculating the number of days the MVRV has traded at extreme levels, is currently at the 3.2 level. Schultze-Kraft mentioned that analyzing long-term holder (LTH) profitability metrics like the Relative Unrealized Profit and LTH Net Unrealized Profit/Loss can offer insights into the risks of profit-taking. These metrics just entered the euphoria zone, hitting the 0.75 level. In 2021, BTC rallied approximately 3x after the indicators entered this zone and topped when they hit 0.9+. Another metric to look at is the Yearly Realized Profit/Loss Ratio, which monitors coin spending among investors. The Glassnode founder disclosed that this indicator peaked above 700% in previous cycles, however, it is currently around 580%. One more indicator to watch is the Market Cap to Thermocap Ratio, which is not close to previous extremes. Historical data has shown that BTC tops occur when this metric reaches a multiple of 32-64; however, the metric currently hovers at the bottom of this range. The top band of this metric will put Bitcoin’s market cap above $4 trillion. BTC Top at $230K? Furthermore, the Investor Tool metric suggests BTC could top at $230,000. The Bitcoin Price Temperature indicator…
Filed under: News - @ December 20, 2024 6:22 pm