These metrics suggest that Bitcoin still has room for growth, according to Glassnode’s founder

Bitcoin (BTC) is currently worth around $94,000 after trading above $108,000 earlier this week. While traders continue to make profits, analysts believe the cryptocurrency still has room for growth.

According to an X-thread by Rafael Schultze-Kraft, the co-founder of the on-chain market intelligence platform Glassnode, more than 20 charts and metrics suggest that BTC has yet to form its top for this cycle.

More room for growth

The market value to realized value (MVRV) metric, which measures unrealized return, currently sits around 3. Historically, this indicator has indicated overheating above 7; so there is still room for BTC to grow. Also, MVRV’s upper price band, which is obtained from the calculation of the number of days that MVRV has traded at extreme levels, is currently at the 3.2 level.

Schultze-Kraft mentioned that analyzing long-term holder (LTH) return metrics such as relative unrealized profit and LTH net unrealized gain/loss can provide insight into the risks of profit taking. These metrics have just entered the euphoria zone, reaching the 0.75 level. In 2021, BTC recovered about 3 times after the indicators entered this zone and broke through when they reached 0.9+.

Another metric to consider is the annual realized profit/loss ratio, which controls the spending of coins among investors. Glassnode’s founder revealed that this indicator peaked above 700% in previous cycles, but is currently around 580%.

Another indicator to consider is Thermocap’s market capitalization ratio, which is nowhere near the former extremes. Historical data has shown that BTC highs occur when this metric reaches a multiple of 32-64; however, the metric is currently at the lower end of this range. The upper band of this metric will put Bitcoin’s market cap above $4 trillion.

BTC Top at $230,000?

Additionally, the Investor Tool metric suggests that BTC could break above $230,000. The Bitcoin Price Temperature Indicator counters this suggestion, but places BTC above $151,000.

Additionally, the Value Days Destroyed Multiple, which compares short-term coin days destroyed to the annual average to determine the growing spending of older coins that eventually outpace demand, stands at 2.2. With previous extreme values ​​above 2.9, the indicator suggests room for growth.

Schultze-Kraft listed other metrics and charts, including the Mayer Multiple, the Cycle Extremes Oscillator Chart, the Pi Cycle Top Indicator, the LTH Inflation Rate, the Sell Risk Ratio, and the holder’s short-term exit profit ratio.

While these indicators have placed the top of the bitcoin cycle at different levels, they all suggest that the digital asset is only halfway through this bull run.

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