Many crypto investors are worried about Bitcoin’s uncertainty as the cryptocurrency experienced fluctuations in its price wherein traders saw it being traded above $100,000 and then went down below $90,000.
However, a renowned crypto analytics platform asserted that the bull market being 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 digital asset analytics platform believes that Bitcoin is still within the bullish zone despite the price correction that the virtual coin experienced.
Glassnode explained in their latest insight report the indicators that showed the firstborn cryptocurrency’s bull market continues.
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 the bullish market structure remains intact for now,” Glassnode said in the report.
The crypto analytics platform noted that this circumstance is further compounded by the “relatively light levels of distress in the market” based on the small unrealized losses held by investors.
Source: Glassnode
The Scoring System
The crypto think tank said that it used the optimized MVRV Z-score via a 1-year rolling window to gauge if the alpha coin is in the near-term bullish phase or the bearish market phase.
“According to this model, we are also still within bullish territory, although the Short-Term Holder cost basis remains $88.4k is a key level to watch for maintaining constructive sentiment,” the crypto firm added.
According to the crypto firm, MVRV gauges Bitcoin’s market value to the price at which the virtual coin was last moved to determine pricing extremes […] noting that the metric measures the number of standard deviations from its historical mean.
When Does BTC Peak?
In their insight report, Glassnode revealed that the cryptocurrency is likely to peak at 2 standard deviations above the mean and “remains bullish as long as it trades above the mean.”
The crypto firm explained that once BTC is being traded below the mean and near 1.5 standard deviations below the mean, it is a cue that the coin is in the bearish phase.
According to Glassnode, the mean MVRV Z-score is the $91,000 price point, saying that if the crypto goes 2 standard deviations above this price point, its price is $113,000 while if it goes 1.5 standard deviations below it, BTC will align with $75,000.
Hence, the crypto think tank concluded the $99,000 per coin indicates that BTC is still in bullish territory.
As of press time, Bitcoin is being traded at $102,242 per coin with a total market capitalization of over $2 trillion.
Featured image from Techpoint Africa, chart from TradingView
