Recent market lows show that Bitcoin’s worst drawdown is probably over.
As the price of Bitcoin recovers from the fall, experts are predicting that within five years, it may again reach an all-time high.
Bitcoin recovers from falling to $17 700 and back above $20 000. The $20 000 point is considered a key level for the price of Bitcoin. Despite Bitcoin’s smooth recovery, some analysts believe it could take years for the biggest Cryptocurrency to reach a new all-time high.
In the ongoing downturn in the markets, MVRV (365D) is seen as a key indicator for determining the bottom of the cycle for Bitcoin. Market Value to Realized Value (MVRV) is a ratio comparing market capitalization and realized capitalization for Bitcoin to understand when an asset is trading below “fair value”. MVRV has been used to determine the tops and bottoms of the market in previous cycles.
In January 2015, Bitcoin MVRV (365D) fell to -56.85%, marking the end of the bear market. In the next bitcoin cycle in December 2018, the figure fell to -55.62%, another BTC bottom and the beginning of a new cycle.
In June 2022, MVRV (365D) fell 50.09%. Currently, the figure is -48.23%. This leads to the conclusion that the worst drop is likely behind us and the price of Bitcoin has begun its recovery from the bottom.
Cryptocurrency traders are optimistic. Bitcoin investors saw positive signs for the asset during the June holidays as the price of Bitcoin began to strengthen after hitting the $20 000 level.
On July 4, long positions in bitcoins appeared on Crypto exchanges, which says traders expect the price of this asset to rise.
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