After performing steadily around the $30,000 level for quite some time, Bitcoin had this month dropped as low as below $18,000. In the last one week, BTC managed to trade above the $20,000 range although it is yet to touch the $22,000 mark. However, there are some key levels yet to be breached for reaching a Bitcoin bullish cycle.
On-chain Indicator Shows Bitcoin Bullish Cycle Timeline
Taking into consideration the Market Value To Realized Value (MVRV) metric, Bitcoin is said to be undervalued at the current price levels. According to a trader on CryptoQuant, BTC is undervalued as the MVRV ratio dropped to below a level for first time since Covid crash.
“The market has recently experienced a steep crash and retested its prior all-time high. As a result, the MVRV metric has plummeted to below 1 level for the first time after the Covid crash and the massive capitulation while the market’s momentum is not encouraging.”
The MVRV is the ratio of a coin’s Market Cap to its Realized Cap, which determines whether the price is overvalued or not. This on-chain indicator is useful in assessing the current market situation. In fact, the ratio provides key insights into traders’ buying and selling trends.
The CryptoQuant trader said the market is currently at its late bear market stage. “A new bullish cycle will be expected by the time this capitulation phase among retailers and long-term holders comes to an end.”
BTC’S Third Consecutive Week Of Below Key Range
Meanwhile, the Bitcoin price is on the brink of closing the month below the 200-week moving average for the first time ever. The current 200-week moving average level is around the $22,300 mark. As of writing, Bitcoin is trading at $20,009, down 4.62% in the last 24 hours, according to CoinMarketCap. Bitcoin’s 24 hour low is at $$19,970 while the peak stood at $20,357.
Also, Bitcoin has for the third consecutive time formed weekly candle below its 200-week moving average. While forming such a candle earlier this month was for the first time since 2020, this is continuing. This is the first such time ever to repeat the same trend thrice.
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