Title: Will Bitcoin Take 5 Years To Hit a New All-Time-High?
Jul 06, 2022 03:00AM ET
The bitcoin price charts show renewed optimism as whales are eager to push BTC higher.
A metric that pinpoints the timing of the last two market lows reveals that Bitcoin's worst decline is likely behind us.
As the price of Bitcoin recovers from the bloodbath, experts suggest that BTC could take five years to reach a new all-time high.
Bitcoin has recovered from its drop to the $17,700 level and is back above $20,000. The $20,000 level is considered a key psychological level for the price of Bitcoin.
Despite Bitcoin's recovery, analysts believe that the largest cryptocurrency could take years, if not months, to reach a new all-time high.
In the ongoing bear market, MVRV is considered a key indicator to determine the bottom of the cycle for Bitcoin.
Market value to realized value is simply the ratio that compares the market capitalization and realized capitalization of Bitcoin to understand when an asset is trading below its "fair value." MVRV has been used to detect market tops and bottoms in previous cycles.
Santiment, a cryptanalysis platform, tracks Bitcoin's MVRV and helps analysts locate BTC lows in a given cycle.
In January 2015, Bitcoin's MVRV dropped to -56.85%, marking the end of the bear market.
In Bitcoin's next cycle in December 2018, the metric dropped to -55.62%, representing another BTC low and the start of a new cycle.
In June 2022, the MVRV dropped to -50.09%. The metric is currently at -48.23%. This leads analysts to conclude that the worst may be behind us and that the Bitcoin price has likely begun its recovery from the bottom.
Interestingly, on July 4, 2022, massive long Bitcoin positions appeared on the crypto exchanges, revealing traders' optimism and their expectations for a rally in the asset's price.
BigCheds, a cryptoanalyst and trader, asked his Twitter followers if the price of Bitcoin would reach its next all-time high in five years.
More than 71% of respondents answered in the affirmative, revealing a long-term bearish outlook for Bitcoin.