Analytics Firm Glassnode Identifies Early Bull Market Signs in Bitcoin On-Chain Data
Glassnode, the analytics firm, highlights a significant on-chain metric for Bitcoin (BTC). That historically indicates the early stages of a bull market.
The metric, Bitcoin’s long-term holder MVRV (LTH-MVRV), which monitors the behavior of long-term BTC investors, has entered what Glassnode describes as “high-risk” territory. This observation is supported by a chart indicating that BTC tends to experience substantial market expansion. When the LTH-MVRV signal exceeds the high-risk threshold. Despite recent challenges such as the FTX collapse, Glassnode notes that the LTH-MVRV indicator has surged to 2.06, indicating a high-risk environment typically associated with the early phases of bull markets as long-term investors achieve significant profitability.
Additionally, Glassnode analyzes its Percent of Supply in Profit (PSIP) metric, which assesses the proportion of coins with a cost-basis lower than the current spot price. The firm suggests that BTC may be nearing a “euphoric phase” of the bull market, as indicated by PSIP, which historically aligns with the market entering this phase when trading above the upper band. During the recent spot ETF rally, PSIP reached a high-risk level, preceding a contraction to $38,000.
Clever Robot News Desk 13th February 2024
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