Bitcoin has had a tremendous ride this year. Despite its dwindling dominance over the cryptocurrency market in mid-2020, the coin sprung right back up in action. Its dominance was found to be at 63.47% after an increase of 0.10% over the day.
The bulls have been purchasing every minor dip which has helped Bitcoin to eye a relief rally as it continued to oscillate close to its recently established peak. These indicators provided a bullish picture of the coin in the near term.
Bitcoin’s On-chain Metrics Remain Bullish
According to the latest Glassnode charts, BTC’s Long-Term Holder MVRV Ratio [LTH-MVRV] was found to be currently exhibiting an extremely bullish signal. MVRV is essentially the ratio of market cap to realized cap. It provides an indication of when the traded price of the crypto-asset is above or below “fair value”.
It can be noted from the above chart that Bitcoin’s LTH-MVRV is very far from the red zone. When LTH-MVRV reaches the red zone [above 20], this generally indicates a global top. The crypto-intelligence platform explained that the last time the LTH-MVRV graph was this low was during a bull run when Bitcoin was trading barely over $1000 and still experienced a 1432% appreciation before the top.
If history repeats again and Bitcoin happens to follow, the same trend, this would translate to the crypto-asset climbing to form a massive top beyond $270,000 for this bull market.
On-chain Bitcoin market analyst, Willy Woo had previously said,
“Despite an imminent retrace seeming likely, the greater environment is of continued buyer demand.”
Investors Going Long
The amount of Bitcoin held on cryptocurrency exchanges has seen a massive downfall. To be more precise, 21% since February 2020. The latest charts indicated that the amount of BTC held on exchanges is down to levels that were last seen in 2018. Around January 2018 and February 2020, the total amount of coins that were held on exchanges rose as bearish pressure gained momentum.
This trend, however, flipped shortly, thereafter and has maintained a steady course since then. Hence, it can be safely noted that large pullback targets such as $14k even $15.5k appears to be very unlikely since, in order for this to materialize, it would take some bearish changes to the on-chain structure. As Glassnode concluded, Bitcoin is now in a “solid bullish environment over the medium term environment” meaning for the next 3 months, there were no on-chain sightings of major correction to the negative side.