According to a well-known cryptocurrency expert, Bitcoin, the largest cryptocurrency in the world by market cap, may be in for a lengthy bull run. This prediction comes after a recent stretch of BTC prices that have been largely steady and have been trading around the $30,000 level.
The Long Term Holder (LTH) MVRV indicator, a gauge designed to pinpoint probable cycle-reversal points for Bitcoin, is the basis for the analyst’s forecast. The Market-Value-to-Realized-Value ratio, or MVRV ratio, contrasts the market value of all coins in circulation with their realised value.
This indicator’s LTH variant, which focuses on coins held for a longer time, provides insights into long-term investors’ thought processes.
The expert believes that the current LTH MVRV readings indicate that the bull run for Bitcoin is still very much ongoing. This indicator has a track record of accurately identifying market peaks and bottoms. The LTH MVRV is not currently overheating, which suggests that there may still be opportunity for the BTC price to rise.
The declining Bitcoin liquidity on centralised exchanges is another factor backing this positive prediction. A change in investor behaviour is suggested by the steady drop in the amount of BTC stored on exchanges. The amount of Bitcoin that is accessible for trade declines as more users move their currency away from exchanges and into personal wallets. This decrease in exchange liquidity is often viewed as a positive sign.
A favourable LTH MVRV rating in conjunction with dwindling exchange liquidity raises the possibility of another Bitcoin rise. Investors should be aware that while these indicators offer useful information, future market movements are not always predicted by them.
