Bitcoin still has “a significant upward journey”

Important facts:
  • Bitcoin price is currently in the consolidation phase of 2020.

  • If further correction occurs, MVRV metric could indicate good entry point into Bitcoin

analysis company on-chain, NodeCharts published a report on March 27 that saw bullish signs for Bitcoin (BTC). This is when trading above $70,000 (USD).

“The most relevant on-chain metrics are currently at the same values ​​that were seen in the price consolidation phase of 2020,” has warned, At such times, the market try to keep bitcoin Prices above the maximum of the previous bullish cycleWhich was 69,000 US dollars.

Bitcoin price in the last two weeks. waterfall: trading view,

This behavior, similar to 2020, when the digital currency surpassed its previous all-time high, “leaves us with a significant upside path,” Nodecharts believes. To put this in perspective, remember After that moment of consolidation like the present, the price of Bitcoin increased by almost 250% during 2020-2021,

According to the company, it is difficult for Bitcoin to achieve such profitability in this cycle, although other experts do not deny this. For now, it maintains its expectations expressed at the beginning of the year that the price will double between 2024 and 2025.

On-chain analysis points to potential Bitcoin buying and selling opportunities

between metrics on-chain For those who are currently in the 2020 consolidation period, NodeCharts isolates SOPR CP. It shows the difference between selling Bitcoin in profit and loss for short-term investors.

As seen below, once the aggregated price rose above the previous all-time high (ATH), these users’ profits on coins sold skyrocketed. Its extremes represent market exit points. Therefore, this indicates that it will be important to monitor when it reaches such an area marked in orange, as it may signal the end of the bullish market.

In black color you can see the Bitcoin price and in yellow color you can see the SOPR CP. Source: Nodecharts.

He says short-term investors have little unrealized profit at the moment, as is the case in bullish cycles. This is shown by the following metric that calculates what is called MVRV CP. “If at any time we see negative values ​​in this metric, that would be the best entry point to think about looking for new price highs,” he says.

Bitcoin price is displayed in black and MVRC CP in blue. Source: Nodecharts.

As reported by CryptoNoticias, this scenario occurred when capital flows into Bitcoin exchange-traded funds (ETFs) in the United States were reactivated, causing prices to rise. Similarly, this happens with the approach of the halving, an event that halves the issuance of Bitcoin every four years, thereby increasing demand.

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