Bitcoin Bull Market Holds Steady: Analyst Reveals Key Metrics Signal Strong Trend

Bitcoin Bull Market Remains Strong: Key Metrics Signal Steady Trend

Bitcoin Bull Market Holds Steady – Despite Bitcoin’s price not yet reclaiming its all-time high from March, CryptoQuant researcher Axel Adler reports that two crucial metrics indicate the bull market remains robust and steady, with no signs of a deep correction. According to Adler’s August 18 analysis, Bitcoin’s current price movement is showing a healthy and consistent trajectory.

Bubble vs. Crush Market Structure Shows No Bubble Formation

Adler emphasizes that the bubble vs. crush market structure score has decreased to 1.02, which he considers as the baseline level. This score suggests that Bitcoin is not currently in a bubble phase. Bubbles occur when Bitcoin’s market capitalization grows significantly faster than its realized capitalization. For instance, when Bitcoin reached its peak of $73,679, the bubble indicator was at approximately 1.5, signaling a bubble.

Since then, Bitcoin’s price has declined by 16% to $61,930, as reported by CoinMarketCap. Currently, Bitcoin is trading around $59,236 and is struggling to maintain the critical $60,000 mark. The cryptocurrency has been trading within a 40% range since July 22, fluctuating between $49,842 and $69,799.

MVRV-Z Score Reflects Minimal Overvaluation

Adler also notes that Bitcoin’s 30-day moving average (MA) MVRV-Z score stands at 1.8, slightly above the annual average of 1.6. This indicates minimal overvaluation. The MVRV-Z score, which compares market cap to realized cap, can signal overvaluation when it spikes. For example, in March 2021, the score surged above five just before Bitcoin peaked at $60,701. However, Bitcoin’s price fell 45% to $32,827 by July of the same year.

Both the bubble vs. crush score and the MVRV-Z score are key metrics for assessing Bitcoin’s valuation. As long as these metrics remain within reasonable levels, the market can be considered bullish. Adler points out that extreme levels would be necessary to signal a significant risk of correction.

Market Sentiment and Trader Perspectives

Recent commentary from traders suggests that Bitcoin is in an extended consolidation phase. Pseudonymous trader Ash Crypto commented on August 20, noting that this phase typically occurs before and after a halving event. Meanwhile, Rekt Capital, another pseudonymous trader, believes Bitcoin is on the verge of reclaiming its post-halving reaccumulation range, which could suggest potential upward movement in the coming months.

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