Following the sharp corrections it experienced, the leading cryptocurrency Bitcoin (BTC) showed signs of recovery in the last 24 hours, rising above $112,000.
As investors wonder if Bitcoin will continue its rise, one analyst argued that Bitcoin is still in a bull market after climbing above $112,000 after a week of major volatility.
At this point, XWIN Research said that on-chain indicators show that the BTC bull run is not over.
The Bitcoin bull market is not over yet, and on-chain indicators suggest there is potential for further price increases, according to CryptoQuant analyst XWIN Research.
XWIN Research noted that Bitcoin’s Market Capitalization/Realized Value (MVRV) ratio has fallen to 2, indicating that it is exiting an overheated phase and entering a more stable range.
According to the analyst, in previous cycles, this level served as a point where the bull run resumed after a medium-term correction.
While recent volatility has investors on edge, on-chain data continues to show that Bitcoin’s bull market is far from over.
At this point, the MVRV ratio, which is at 2, has entered its strongest bullish phase after Bitcoin consolidated in past cycles.
Similar to patterns in 2017 and 2020, the current correction could represent the middle phase of the broader bull market and the uptrend could continue, analysts said.
XWIN Research also noted that selling pressure from long-term holders has decreased significantly, saying these two metrics suggest that “this cycle has not yet reached its final phase.”
Analysts recently said that the recent consolidation in Bitcoin “could form the basis for the next major upward wave, suggesting that the bull market is alive and well.”
Ethereum May Experience Sharp Rises!
XWIN Research also released its analysis on Ethereum (ETH).
He said that downside liquidity has been exhausted in the Ethereum (ETH) futures market, increasing the possibility of a short squeeze.
Analysts stated that sharp increases could be seen at this point, and that with the recent declines, long positions have been exhausted, leaving only short positions remaining.
“Following the volatility of recent months, both long and short positions have been largely liquidated. Only large short positions above the current price remain.
In the current situation, even a small price increase could trigger gradual short-term liquidations and lead to a sharp rally.”
*This is not investment advice.