bitcoin appears poised for a major bullish move after a strong start to 2025. However, questions remain over the overall health of the market and whether the current bullish momentum can be sustained over the coming weeks and months. Here, we'll take an unbiased, data-driven look at the underlying numbers that support our current trend.
For a more in-depth look at this topic, watch a recent YouTube video here: bitcoin data-driven analysis and on-chain summary
Mining recovery
The multiple PuellA measure that compares miners' daily dollar revenue to their annual average, suggests that the fundamental strength of the bitcoin network remains strong. Historically, after a halving event, miners' revenue experiences a significant drop due to the 50% reduction in the block reward. However, the Puell Multiple recently rose above the key value of 1, indicating a recovery and a potentially bullish phase.
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Past cycles show that crossing and retesting the value of 1 often precedes major price rallies. This pattern repeats itself, indicating strong market support for mining activity.
Substantial improvement potential
The MVRV Z-scoreA metric that analyzes bitcoin's market value relative to its realized value, or average accumulation price for all btc, suggests that current values remain well below all-time high regions, describing considerable room for growth.
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TO Two-year mobile version of the MVRV Z-Scorewhich adjusts to the evolution of market dynamics, also shows upside potential. Even with this adjusted measure, bitcoin is far from previous cycle highs, leaving the door open for further price appreciation.
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Related: We're repeating the 2017 bitcoin bull cycle
Sustainable feeling
He <a target="_blank" href="https://www.bitcoinmagazinepro.com/charts/bitcoin-fear-and-greed-index/”>bitcoin Fear and Greed Index It is currently at a healthy and sustainable amount of greedy sentiment, indicating a greedy but sustainable sentiment. Historical data from the 2020-2021 bull cycle shows that greed levels around 80-90 can persist for months, supporting prolonged bullish momentum. Only when values approach extreme levels (95+) does the market usually face significant corrections.
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<a target="_blank" href="https://www.bitcoinmagazinepro.com/charts/bitcoin-fear-and-greed-index/”>View live chart
Network activity
He Active Direction Sentiment Indicator reveals a slight drop in network activity, suggesting that retail investors have not yet fully re-entered the market. However, this could be a positive sign, indicating untapped retail demand that could fuel the next leg of the rally.
<img src="https://bitcoinmagazine.com/.image/c_fit%2Ch_800%2Cw_1200/MjEyMzIyMDIzOTU3ODY2MTEy/bitcoin-active-address-sentiment-indicator.jpg”>
Changes in risk appetite
Traditional market sentiment is showing signs of improvement. <a target="_blank" href="https://www.bitcoinmagazinepro.com/bitcoin-macro/bitcoin-cycles-vs-high-yield-credit-cycles/”>High yield credit Appetite is increasing as the macroeconomic environment shifts towards a more risk-friendly outlook. Looking at corporate bonds that offer higher interest rates due to their lower credit ratings compared to investment grade bonds. Historically, there has been a strong correlation between bitcoin's performance and periods of increased global risk appetite, which have often aligned with bullish phases in the price of bitcoin.
<img src="https://bitcoinmagazine.com/.image/c_fit%2Ch_800%2Cw_1200/MjEyMzIyMDI5MzI2NjQwNjQ5/high-yield-credit-bitcoin-cycles.jpg”>
<a target="_blank" href="https://www.bitcoinmagazinepro.com/bitcoin-macro/bitcoin-cycles-vs-high-yield-credit-cycles/”>View live chart
Related: What bitcoin Price History Predicts for February 2025
Conclusion
bitcoin's on-chain metrics, market sentiment, and macro outlook point to a continuation of the current bull market. While short-term volatility is always possible, the convergence of these indicators suggests that bitcoin is well positioned to reach and potentially surpass our current all-time high in the near future.
For more detailed bitcoin analysis and access to advanced features such as live charts, custom indicator alerts, and detailed industry reports, see bitcoin Pro Magazine.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.
