Many crypto investors are worried about Bitcoin’s uncertainty as the cryptocurrency experienced price fluctuations where traders saw it trade above $100,000 and then drop below $90,000.
However, a well-known crypto analysis platform claimed that the bull market experienced by Bitcoin is not yet over, saying that it remains intact despite the ups and downs that the digital asset went through in the previous weeks.
Bitcoin remains in bullish territory
A well-known platform for digital asset analysis believes that Bitcoin is still within the bullish zone despite the price correction the virtual coin experienced.
In its latest insight report, Glassnode explained the indicators that showed the first-born cryptocurrency’s bull market to continue.
BTCUSD trading at $102,316 on the daily chart: TradingView.com
“Bitcoin has entered a correction phase and is trading 11.1% below its ATH of $108k. However, the spot price is still trading above several key support levels, suggesting that the bullish market structure remains intact for now,” Glassnode said in the report.
The crypto analytics platform noted that this circumstance is further exacerbated by the “relatively low levels of distress in the market” based on the small unrealized losses held by investors.
Source: Glassnode
The points system
The crypto think tank said it used the optimized MVRV Z-score over a one-year rolling window to measure whether the alpha coin is in the short-term bullish or bearish market phase.
“According to this model, we are also still in bullish territory, although the cost base for short-term holders remains at $88.4k is a key level to watch to maintain constructive sentiment,” the crypto firm added.
According to the crypto firm, MVRV measures Bitcoin’s market value at the price at which the virtual coin last moved to determine pricing extremes (…) and notes that the metric measures the number of standard deviations from its historical mean.
When will BTC peak?
In its insight report, Glassnode revealed that the cryptocurrency is likely to top 2 standard deviations above the mean and “remain bullish as long as it trades above the mean.”
The crypto company explained that when BTC is trading below the mean and close to 1.5 standard deviations below the mean, it is a sign that the coin is in the bearish phase.
According to Glassnode, the average MVRV Z-score is the $91,000 price point, which says that if the crypto goes 2 standard deviations above this price point, the price is $113,000 while if it goes 1.5 standard deviations below that, BTC will adjust to $75,000.
Therefore, the crypto think tank concluded that $99,000 per coin indicates that BTC is still in bullish territory.
As of press time, Bitcoin is trading at $102,242 per coin with a total market capitalization of over 2 trillion dollars.
Featured image from Techpoint Africa, charts from TradingView
