- According to CryptoQuant’s latest analysis, BTC’s MVRV ratio crossing 1.5 could be a sign of a bullish wave.
- However, at the time of writing, BTC’s RSI was neutral and showing no bullish momentum.
Now the fear of Bitcoin [BTC] being crippled by the results of the FOMC was out of the way, investors could have something to look forward to.
According to an analysis of CryptoQuant analyst chained, the market value of BTC to realized value (MVRV) fluctuated between 1.55 and 1.45. This can be taken as a healthy sign of a bull run.
So how is BTC’s MVRV ratio floating between 1.55 and 1.45 related to BTC’s bullish wave? Let’s find out…
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The importance of 1.5
According to the CrytpoQuant analysis, the 1.5 threshold serves as Bitcoin’s starting point for a bull run. The analyst also stated that when examining historical data, it was seen that BTC’s MVRV ratio witnesses a change when it breaks through the 365D Simple Moving Average (SMA).
In addition, a bull run can be expected when the MVRV ratio breaks the moving average in an uptrend. Thus, the MVRV ratio reaches a point between 2 and 3.75. The analyst also stated that BTC’s 365DSMA was flat as of May 4. This was because the MVRV ratio managed to break through the 1.5 level.
Source: CryptoQuant
Shall we go for the bull ride?
As of press time, data from Santiment showed that BTC’s social dominance has declined in recent days. The social dominance of the cryptocurrency has also had quite a few peaks and troughs in recent months.
However, the total number of BTC holders witnessed an outright increase and stood at 46.46 million at the time of writing. The increase in the number of holders was certainly a positive indicator that investors had confidence in the king coin.
However, at the time of writing, weighted sentiment managed to remain low at -0.129, despite an increase since the end of April.
Source: Sentiment
At the time of writing, BTC’s funding rate paints a positive picture for the cryptocurrency. Traders in long positions have dominated the market for the past 24 hours according to the chart below. In addition, the buy-to-seller ratio was also supportive of buying sentiment in the derivatives market.
Source: CryptoQuant
Not so rosy here
Despite the positive picture painted by the aforementioned information, BTC’s Relative Strength Index (RSI) did not appear to be at its best. At the time of writing, BTC’s RSI was slightly above neutral at 54.
While the good news was that the RSI remained above 50, a downside could be that BTC could turn bearish in the absence of sufficient momentum.
Furthermore, the Stochastic RSI was also at a neutral level of 58.
Source: CryptoQuant
How much are 1,10,100 BTC worth today?
According to data from CoinMarketCap, while BTC was trading 1.27% higher in the past 24 hours, it traded hands 3.42% lower than it had been for the past seven days.
However, the CryptoQuant analyst stated that if BTC manages to break the USD 30,000 level, BTC’s MVRV ratio could shift quickly. In addition, the MVRV ratio would then be expected to be somewhere between 1.8 and 2. This could act as much-needed bullish momentum for BTC.