The Bitcoin bull season continues to present several twists and turns as expected of a highly volatile market. In line with the heightened hopes of several investors, certain network metrics indicate the price gains are far from over. Currently, the maiden cryptocurrency trades above $104,400 following a significant price surge in the past week. Bitcoin Still Presents Upside Potential – Analyst In a Quicktake post on CryptoQuant, an analyst with username onchained provides an intriguing market analysis based on the Bitcoin Unspent Transaction Outputs (UTXOs) over the past two to five years (2Y-5Y). For context, UTXO refers to the remaining balance of a cryptocurrency transaction that has not yet been spent by the recipient. UTXOs are the building blocks of blockchain transactions and can be used to interpret holders’ behavior, market sentiment, and price cycle dynamics among other things. The 2Y-5Y UTXOs represent Bitcoin held by long-term holders who have not moved their funds during this time. Data from the 2Y-5Y UTXOs showed that these holders started recording profits when Bitcoin hit $68,000 in early November. However, onchained stated historically such profit realization suggests renewed momentum rather than the end of the bull market. This is because the selling pressure is neutralized by an equal demand from other participants and in this case short-term holders. Onchained further explains that this profit-taking produces a negative weekly change in the realized price of long-term holders which is vital for a healthy market structure with the potential for further price gains. In addition, the MVRV ratio for this 2Y-5Y UTXO cohort has consistently reached 1 to signal any macro market bottom in previous bull cycles. The MVRV measures the market value to realized value and is used to indicate potential reversals by determining if an asset is overvalued or undervalued. Currently, the MVRV ratio is nearing 4 supporting the notion that Bitcoin still has much room for price growth in this bull run. Coinbase Index Moves Above 100 In other news, the Bitcoin Coinbase Premium Index has now surged above 100 indicating strong whale activity. However, crypto analyst with CryptoQuant username Avocado_onchain stated this surge is not significant enough to suggest any accumulation battles among whales. Avocado_onchain further states that both positive and negative Coinbase Premium Index are needed to signal a continuation of Bitcoin’s current. At press time, Bitcoin trades at $103,601 after a 2.44% gain in the past 24 hours. On bigger timeframes, Bitcoin is in stable profit as Indicated by gains of 10.76% and 2.31|% in the past seven and 30 days respectively.
