A new bullish sign is now flashing for investors that think in the long term and that consider Bitcoin (BTC) could continue expanding in the coming months. The MVRV Long/Short difference has been growing in the last few weeks and it shows the market is turning bullish.
Bitcoin Could Start a New Bull Run
The largest cryptocurrency has been traded above $8,000 for several months and investors are waiting for a new bull run that would take Bitcoin to local highs and then to new records. According to the crypto analyst MMCrypto, all the times the MVRV signals surpassed 1.0, Bitcoin started a massive bull run.
ALWAYS when this #Bitcoin signal flashed, we started a MASSIVE bull run!
And guess what: today it flashed again! pic.twitter.com/dDdu0WBEMW
— MMCrypto (@MMcrypto) June 26, 2020
Since 2011, this signal flashed just three times and now it is the fourth time we see it. The first time it appeared was in July 2012 when Bitcoin started a bull run that pushed the virtual currency to over $1,000.
The second time that it signalled a bullish movement, it was at the end of 2015. After it, Bitcoin started a massive bull run towards $20,000 in 2017. The last time that it appeared it was in May/June of 2019 when Bitcoin moved for a short period of time to $13,750.
Now, Bitcoin is being traded around $9,100 and this is the moment in which Bitcoin is at the highest price when this signal appeared. Although we are not 100% sure that this could lead Bitcoin to reach new highs, it is certainly possible we could see a move higher in the coming months.
The MVRV measures how much holders paid for their coins and compares them to the current price of the market. If the ratio grows above 1.0, that means that on average, holders are registering profits on their funds. However, if the indicator is below 1.0, the average investor is losing.
In general, analysts consider that if not in 2020, 2021 could be a good year for Bitcoin to reach new highs in the space. If that happens, it is also certainly possible that the entire market will move higher.
Now is just time to wait and see what can happen with Bitcoin and other virtual currencies. Bitcoin’s last all-time high was in 2017 when the virtual currency reached a massive $20,000 and then it started a bear market to $3,170 a year lager.