bitcoin's bull season continues to feature several twists and turns as expected from a highly volatile market. In line with the highest hopes of several investors, certain network metrics indicate that the price gains are far from over. Currently, the inaugural cryptocurrency is trading above $104,400 following a significant price surge last week.
bitcoin still presents bullish potential – Analyst
in a <a target="_blank" href="https://cryptoquant.com/insights/quicktake/678ae13ac09a2f3ea0ff3729-Cohort-Analysis-of-bitcoin-UTXOs-2Y-5Y-Market-Intelligence-Snapshot” target=”_blank” rel=”noopener nofollow”>Quick post At CryptoQuant, an on-chain username analyst provides intriguing market analysis based on bitcoin unspent transaction (UTXO) results over the past two to five years (2Y-5Y).
For context, UTXO refers to the remaining balance of a cryptocurrency transaction that has not yet been spent by the recipient. UTXOs are the building blocks of blockchain transactions and can be used to interpret holder behavior, market sentiment, and price cycle dynamics, among other things.
2-year to 5-year UTXOs represent bitcoin held by long-term holders who have not moved their funds during this time. Data for 2-year to 5-year UTXOs showed that these holders began to post gains when bitcoin hit $68,000 in early November.
However, onchained historically stated that such profit-taking suggests renewed momentum rather than the end of the bull market. This is because the selling pressure is neutralized by equal demand from other participants and, in this case, short-term holders.
Onchained further explains that this profit taking produces a negative weekly change in the realized price of long-term holders, which is vital for a healthy market structure with potential for further price gains.
Furthermore, the MVRV index for this 2-year to 5-year UTXO cohort has consistently reached 1 to indicate any macro bottom of the market in previous bull cycles. The MVRV measures market value at realized value and is used to indicate potential reversals by determining whether an asset is overvalued or undervalued.
Currently, the MVRV ratio is approaching 4, supporting the idea that bitcoin still has plenty of room for price growth in this bull run.
Coinbase index exceeds 100
In other news, the Coinbase Premium bitcoin index has now surpassed 100, indicating strong whale activity. However, the crypto analyst with the username CryptoQuant Avocado_onchain fixed This increase is not significant enough to suggest hoarding battles between whales.
Avocado_onchain further states that both positive and negative Coinbase premium indices are needed to signal a continuation of the bitcoin trend. At the time of publishing, bitcoin is trading at $103,601 after a 2.44% gain in the last 24 hours. On longer timeframes, bitcoin has stable gains, as indicated by gains of 10.76% and 2.31% over the last seven and 30 days, respectively.
Featured image from Forbes, chart from Tradingview
