- There is a renewed optimism in Bitcoin price charts as whales are eager to push BTC higher.
- A metric that timed the last two market bottoms accurately reveals that the worst Bitcoin drawdown is probably behind us.
- As Bitcoin price recovers from the bloodbath, experts suggest BTC could take five years before it hits a new all-time high.
Bitcoin recovered from its drop to the $17,700 level and made a comeback above $20,000. The $20,000 level is considered a key psychological level for Bitcoin price. Despite Bitcoin’s recovery, analysts believe the largest cryptocurrency could take years, if not months, to hit a new all-time high.
In the ongoing bear market, MVRV (365D) is considered a key metric to determine the cycle bottom for Bitcoin. Market Value to Realized Value (MVRV) is simply the ratio comparing the market capitalization and the realized capitalization for Bitcoin to get a sense of when the asset is trading below the “fair value.” MVRV has been used to spot market tops and bottoms in previous cycles.
Santiment, a crypto analytics platform tracks Bitcoin MVRV (365D) and helps analysts locate BTC bottoms in a cycle. In January 2015, Bitcoin MVRV (365D) dropped to -56.85%, marking the end of the bear market. In the next Bitcoin cycle in December 2018, the metric dropped to -55.62%, another BTC bottom, and the beginning of a new cycle.
In June 2022, MVRV (365D) dropped -50.09%. Currently, the metric sits at -48.23%. This leads analysts to conclude that the worst may be behind us, and Bitcoin’s price has probably started its recovery from the bottom.
Bitcoin MVRV (365D) (Source: Santiment)
There is a renewed optimism among traders on cryptocurrency exchange platforms. Bitcoin’s supporters read positive signs on the asset’s network on July 4, 2022. Traders’ optimism is typically high on holidays, and the Bitcoin price has started consolidating after hitting the $20,000 level.
Interestingly, massive Bitcoin longs showed up on crypto exchanges on July 4, 2022, revealing traders’ optimism and expectation of a price rally in the asset.
Bitcoin Longs On Exchanges (Source: Santiment)
BigCheds, a crypto analyst and trader, asked his Twitter (NYSE:TWTR) followers whether Bitcoin’s price would hit its next all-time high post five years. Over 71% of the poll participants responded in the affirmative, revealing a long-term bearish outlook for Bitcoin.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.