February 23, 2024
Analytics firm Glassnode says signs of Bitcoin on-chain early-stage bull market now visible


Analytics firm Glassnode says an on-chain metric for Bitcoin (BTC) that has historically signaled the early stages of a bullish market is appearing on the radar.

Bitcoin’s Long-Term Holder MVRV (LTH-MVRV) has entered “high risk” territory, according to Glassnode, which tracks the behavior of long-term BTC investors.

The analytics firm has shared a chart that suggests that BTC witnesses a significant market expansion when the LTH-MVRV signal crosses above the high-risk zone.

“After a challenging recovery since the FTX collapse, this indicator has increased to 2.06, entering the high-risk regime.

“These levels are typically seen during the early stages of bull markets, as long-term investors return to relatively meaningful levels of profitability.”

Source: glassnode/x

Glassnode also looks at the percentage of supply (PSIP) metric in its profits, which measures the proportion of coins that have a cost-basis below the current spot price. According to the firm, the metric shows that BTC is perhaps a few thousand dollars away from putting Bitcoin in the “bullish phase” of a bullish market.

“When this indicator trades above the upper band, it has historically aligned with the market entering the ‘bullish phase’ of a bullish market. During the recent market rally around spot ETF (exchange-traded fund) launches, this metric reached very high risk, followed by a contraction to $38,000.

Source: Glassnode

At the time of writing, Bitcoin is trading at $48,302.

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