- Chris Burniske believes that the BTC cycle has not yet reached a peak
- STH MVRV revealed that the recent local overheated market of Bitcoin has cooled to neutral levels
Bitcoin’s Boring price performance after the inauguration of President Donald Trump has fueled more and more BTC cycle top calls from some market commentators.
However, Chris Buriske, ex-park Invest Crypto Executive and current VC partner at Placeholder, believes that although the market is in a “mid-bull pullback”, it has not yet copied. He stated”
“I don’t think this is a sign of Cyclustop, rather a mid-bull pullback that causes everyone to question God. Feels much more like April, May, June of 2021 for me, where things fell 50-80%, depending on the coin, many said it was over, top callers gloated, and then we tore in 2h ’21. “
Source: X
According to the attached graph, BTC fell from $ 64k to $ 30k in the first half of 2021. However, the King Coin came later in the second half of 2021 and covered at $ 69k. Whether history will repeat itself or not, can still be seen.
Bitcoin – Why $ 96k is an important level
That said, an important valuation indicator, short -term holder (STH) MVRV, supported the projections of Burisiske. In fact, Cryptoquant’s Axel Adler also emphasized that the market may have left a local overheated market. Especially since the STH MVRV fell from 1.35 to neutral levels.
Climb stated“
“A STH MVRV above 1.30-1.35 usually signals an overheated market, which often leads to sale. The decline in the indicator suggests that some of the STHs has left their positions. A return to average levels points to the end of a local overheated phase. “
Source: Cryptuquant
Alder added that a drop under the STH MVRV average can indicate a local soil, as can be seen in September. Whether the indicator will withdraw below average depends on announcements from President Trump, because the wider market runs the risk due to its rates.
On the other hand, the STH realized price (RP) or the average price costs of BTC that has been obtained over the past 1-3 months were $ 96k. Historically, the STH RP has succeeded as a support or resistance.
A persistent price fall underneath can cause wild panic under the StH cohort and encourage them to sell with a loss.
On the contrary, a rebound on the STH RP as a support could support the upward trend.
Source: Cryptuquant
The STH RP idea seemed to be in the game in the past few trading days. After the sharp fall from BTC to $ 91k on 3 February, the cryptocurrency tried to keep the last four trading days above $ 96k.
That is not all. Bitcoin network activity has rejected Every year lows – a sign that BTC can be overvalued according to Adler. If repeating, BTC can either keep $ 96k or lower, but still offer new buying options if the Retracement extends to lows.
