Bitcoin bull run midpoint reached?
Bitcoin [BTC] has simmered down following its impressive surge beyond the $67k barrier. The spirited ascent last week reached a peak of $72k on May 21st but has since declined by 5.7%, settling at $67.8k currently.
A new study delved into the excitement around Bitcoin-backed financial products, finding a significant portion of interest originating from the United States.
This downturn has slightly dampened the optimistic mood, suggesting that the bulls may not yet be poised to break the $71.5k barrier.
Nonetheless, the outlook for the long term remains positive, with indicators suggesting we are at the mid-point of a bullish trend.
The journey of Bitcoin's bullish trend is far from over
In a recent analysis on X (formerly known as Twitter), crypto expert Axel Adler pointed to the Bitcoin MVRV Z scores to demonstrate that we are currently navigating the mid-stage of this cycle.
This particular measure assesses Bitcoin's value, analyzing if it's priced above or below its intrinsic value by comparing the market value to the actual invested capital. A higher market value signals a potential peak is near.
The MVRV Z-score further refines this by evaluating the difference in MVRV against the standard market cap deviation. Historically, a score of 7 or higher has indicated the zenith of a cycle.
In this cycle, the metric has reached 3.07, hinting at prospective price increases in the months ahead.
Long-term Bitcoin holders remain steadfast
On February 28th, there was noticeable activity among Bitcoin holders who've held onto their assets for six months or more. Those in the 3-6 month category were particularly active, showcasing a trend of profit-taking within this group.
In the last two months, it's been the holders in the 1-3 month bracket who've shown marked market activity, especially with a surge in selling on May 21st as prices soared past $70k.
However, the more seasoned investors have largely refrained from moving their holdings to exchanges during April and May. This restraint likely stems from anticipations of a price surge following the halving event, a belief that remains strong to date.
