- According to CryptoQuant’s latest analysis, BTC’s MVRV ratio surpassing 1.5 could be a sign of an upward 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 by FOMC results was out of the way, investors have something to look forward to.
According to an analysis by CryptoQuant analyst onchained, the market value of BTC to realized value (MVRV) has fluctuated between 1.55 and 1.45. This could be taken as a healthy sign of a bull run.
So how does BTC’s MVRV ratio, which is fluctuating between 1.55 and 1.45, relate to BTC’s bullish wave? Let’s find out…
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The meaning of 1.5
According to CrytpoQuant analysis, the 1.5 threshold serves as Bitcoin’s entry point into a bull run. The analyst also explained that while examining historical data, it was found that BTC’s MVRV ratio changes when it breaks the 365D Simple Moving Average (SMA).
Additionally, expect a bull run if the MVRV ratio breaks the moving average in an uptrend. Thus, the MVRV ratio reaches a point between 2 to 3.75. The analyst also explained that BTC’s 365DSMA remained flat on May 4th. This was because the MVRV ratio managed to break the 1.5 level.
Source: CryptoQuant
Can we come to the bull ride?
At press time, data from Santiment showed that BTC’s social dominance has been declining over the past few days. The cryptocurrency’s social dominance has also seen its fair share of ups and downs over the past few months.
However, the total number of BTC holders was just increasing 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 king coin.
However, at press time, weighted sentiment hit a low of -0.129, despite rising since late April.
Source: Santiment
At the time of writing, BTC’s funding rate paints a positive picture for the cryptocurrency. Traders with long positions have dominated the market for the last 24 hours as shown in the chart below. In addition, the taker-buy-seller ratio also boosted buying sentiment on the derivatives market.
Source: CryptoQuant
Not so rosy here
Despite the positive picture the above information paints, BTC’s Relative Strength Index (RSI) didn’t seem to be at its best. At the time of writing, BTC’s RSI is slightly above the neutral position at 54.
Although the good news was that the RSI stayed above 50, a downside could be that without enough momentum, BTC could turn bearish.
In addition, the stochastic RSI was also at a neutral position of 58.
Source: CryptoQuant
How much is 1.10.100 BTC worth today?
According to data from CoinMarketCap, BTC has traded up 1.27% over the past 24 hours, but down 3.42% from the past seven days.
However, the CryptoQuant analyst explained that if BTC manages to surpass $30,000, BTC’s MVRV ratio can shift quickly. Furthermore, the MVRV ratio is then expected to be somewhere between 1.8 and 2. This could act as some much-needed bullish momentum for BTC.
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