- According to CryptoQuant's latest analysis, BTC's MVRV exceeding 1.5 could be a sign of a bullish wave.
- However, at the time of writing, BTC’s RSI was showing a neutral front and showing no bullish momentum.
Now that the fear of bitcoin [BTC] being paralyzed due to FOMC results was irrelevant, investors might have something to look forward to.
According to an analysis by analyst CryptoQuant onchained, the market value to realized value (MVRV) of BTC fluctuated between 1.55 and 1.45. This could be considered a healthy sign of a bull run.
So how does the MVRV of BTC floating between 1.55 and 1.45 relate to the bullish wave in BTC? Let's find out…
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The importance of 1.5
According to CrytpoQuant analysis, the 1.5 threshold serves as Bitcoin's entry point in a bull run. The analyst also said that after reviewing historical data, it was found that BTC's MVRV ratio undergoes a change when it breaks above the 365D simple moving average (SMA).
Additionally, a bull run can be anticipated 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 said that BTC's 365DSMA as of May 4 was stable. Indeed, the MVRV ratio managed to break above the 1.5 level.
Source: CryptoQuant
Are we following the ride of the bull?
At press time, data from Santiment showed that BTC's social dominance has seen a decline over the past few days. The social dominance of cryptocurrency has also managed to experience several spikes and dips over the past few months.
However, the total amount of BTC holders saw a direct increase and stood at 46.46 million at the time of writing. The increase in the number of holders was certainly a positive indicator of investor confidence in the master coin.
However, at press time, its weighted sentiment has managed to sit at -0.129 despite rising since late April.
Source: Santiment
At the time of writing, BTC's funding rate gives a positive image of the cryptocurrency. Long traders have dominated the market for the past 24 hours as per the chart below. Moreover, the taker buy seller ratio also favored the buying sentiment in the derivatives market.
Source: CryptoQuant
Not all rosy here
Despite the positive picture painted by the aforementioned information, BTC's Relative Strength Index (RSI) did not look at its best. At the time of writing, BTC's RSI was sitting slightly above the neutral position at 54.
Although the good news is that the RSI remained above 50, a downside could be that BTC could turn bearish in the absence of sufficient momentum.
Moreover, the Stochastic RSI also stood at a neutral position of 58.
Source: CryptoQuant
How much are 1,10,100 BTC worth today?
According to data from CoinMarketCap, although BTC was trading up 1.27% in the past 24 hours, it was trading hands down 3.42% over the past seven days.
However, CryptoQuant analyst said that if BTC manages to break above the $30,000 level, BTC's MVRV ratio may change quickly. Moreover, the MVRV ratio should then be between 1.8 and 2. This could act as much-needed bullish momentum for BTC.