Between the increase in active addresses and the MVRV ratio at its highest since 2021, many positive signals are accumulating for Bitcoin. The period of consolidation that followed the 2021 records seems to be coming to an end, and the queen of cryptocurrencies appears ready to begin a new race towards the highest peaks.
Bitcoin, promising technical indicators
Several technical indicators suggest that bitcoin is at the start of a major uptrend, and not at the end as some might fear after the recent price surge.
First of all, the MVRV ratio, which compares the market valuation of BTC to its realized value, rose to 2.59. A level similar to what was observed in November 2021, but still far from the peak of 3.7 which would generally mark the end of a bull run. So there is still room for MVRV to climb higher, signaling continued price rises.
In addition, the number of active addresses on the Bitcoin network has almost reached its November 2021 record, despite the decline in the 30-day moving average. Historically, this number of active users grows in concert with the price of BTC during major bullish rallies. A promising indicator for crypto.
Confirmation by social metrics
The analysis of social metrics of the main cryptocurrencies confirms this emerging bull market scenario.
The volume of discussion around bitcoin exploded on social media in late February. Its presence among the most trending topics of the week on CoinMarketCap is proof of this. A hype which can be explained by the recent crossing of the symbolic threshold of $60,000.
However, the general sentiment on BTC remains mixed, with a bearish dominant. This reflects the fears of some about the sustainability of this recent price surge. The overbought technical indicators and the proximity of the resistance of $69,000 indeed suggest a consolidation in the short term.
It remains to be seen how far this surge can take it this time, in a macroeconomic context radically different from previous bull runs. But with the arrival of ETFs, the growing recognition of institutions and the development of layer 2 solutions, some are already speculating on a 6-digit bitcoin by 2025.
It seems that it is only a matter of time before new all-time highs are broken by Bitcoin. Maybe even this year according to some. One thing is certain, after 15 months of lateralization, the queen of cryptocurrencies seems ready to roar again. The road remains long to transform the first decentralized digital currency into a global store of value. But it could prove to be dotted with spectacular gains for those who persevere.
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