Bitcoins [BTC] The medium-term recovery depends on these break-even areas

• Bitcoin’s MVRV ratio showed strong upside potential in the long term.
• The average cost basis showed that there was no price jump yet.

Bitcoin [BTC]Despite positive year-to-date (YTD) development, the company still has enormous growth potential long term. This was the opinion of a pseudonymous on-chain analyst Crazyblockk.

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Short-term holders can’t dream now

Crazzyblockk, who regularly posts about market sentiment on CryptoQuant, pointed bases its opinion on the market value to realized value (MVRV) ratio. The The MVRV ratio is calculated as the ratio of an asset’s market capitalization to its realized cap.

By comparing these two metrics, the metric can be used to get a sense of when the price is above or below “fair value” and to assess market profitability.

Source: CryptoQuant

From the table above and as confirmed by According to Crazzyblockk, the MVRV ratio was above 1. Crazzyblockk explained how the metric affects price and market cap and concluded:

“We are still above Stage 1 of the MVRV ratio and based on the owner cost basis, realized capitalization is < market capitalization.”

However, the analyst mentioned that the bullish Long-term image does not apply short term Owner. When dealing with this part Crazzyblockk explained that there is little to no confidence in the market that can change sentiment, saying that short-term holders are at a “huge disadvantage.”

Watch out for $27,500

But in the medium term, the analyst mentioned that this is the case hope for relief. He also added that Bitcoin’s potential to rise above $30,000 would depend on the break-even zone of $27,500 to $29,000.

To reach this conclusion, Crazzyblockk analyzed the state of the realized Bitcoin price. The realized price indicates the average cost basis at which all Bitcoins were purchased. This is done by dividing the value of all BTC at the price they were last traded at on-chain by the number of Bitcoins in circulation. This is what the analyst wrote:

“If we look at the average realized price of these holders, or the amount of money they paid for each Bitcoin, the price level of 27.5k to 29k is the break-even range of these holders’ pockets.”

Source: CryptoQuant

To read Bitcoins [BTC] Price prediction 2023-2024

In the meantime, Crazzyblockk warned urgently. According to him, if BTC stays below the above-mentioned realized prices, it poses a big risk for the medium-term project. He opined that the longer Bitcoin stays below $27,500, the longer it could take to recover. He explained that.

“The more time we spend below these price levels, the greater the incentive will be to remove liquidity from the market, and the basic requirement for the return of Bitcoin’s uptrend depends on the price jump above the short-term realized prices.””

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