Bitcoin (BTC) could be approaching a “euphoric bull” phase, according to a popular on-chain analyst.
The pseudonymous analyst known as Checkmate tells his 91,100 followers on the social media platform X that BTC is approaching a “decision point.”
“Bitcoin breaking to a new ATH (all-time high) has historically represented a transition point from the Enthusiastic Bull, into the Euphoric Bull.
It also coincides with the MVRV (market value to realized value) ratio getting above 1 standard deviation, but we rarely clear it on the first attempt.”
Source: Checkmate/X
MVRV is the ratio of Bitcoin’s market capitalization relative to its realized capitalization (the value of all BTC at the price they were bought). It is used to assess whether the crypto asset is undervalued or overvalued.
Checkmate acknowledges that he doesn’t know when that transition point will occur.
“I don’t have a view on that as we cannot know. It completely depends on capital inflows, which right now look pretty healthy. Therefore, it could be that now is the time… but we will have to read the tape as it happens. Predictions are not overly useful, instead, I prepare my reaction function. It isn’t about what will happen –> it is about what you will do when it happens.”
The analyst also says the ongoing Bitcoin bull market is “much, much more structured” than the 2021 bull run.
“It looks a lot more like 2016/17. Spot-driven, resilient. It’s just fantastic. I love what I’m seeing in this price action.”
BTC is trading at $69,815 at time of writing. The top-ranked crypto asset by market cap is up nearly 2% in the past 24 hours and nearly 14% in the past seven days.
Generated Image: DALLE3
