Bitcoin On Chain Data: Is the Next Bull Run About to Begin?

Is investing in Bitcoin a good idea? The digital asset market finds itself under intense scrutiny, with the Exchange, Binance, feeling the brunt of the regulatory pressure.

Nonetheless, the on chain data shows that conviction in Bitcoin remains strong, with the price of Bitcoin reaching a new multi-month high of $29,100.

Last week we saw a transition point in the 100 and 200 day moving averages commonly associated with a transition point between a bear and bull market.

By examining the Realized Price Ratio metric we can see that the Bitcoin price currently sits between the Realized Price and the Realised Price to Liveliness Ratio. We can compare the current transition to previous market rallies.

In my previous video we looked at the Realized Cap Hodl Waves metric. This provides an indication as to whether Long Term Hodlers are collecting profits. Again this week we see a continuation of minor profit taking, to the score of 4.9% most of which is coming from relatively new coins.

In previous bull markets, the profit taking from older coins typically breaches the current threshold .When that occurs we will know that we have officially entered bull territory.

One of the most useful on chain charts is the MVRV Ratio. What this chart gives us is an indication of whether the price of Bitcoin is over or under valued. The peaks and lows on the MVRV Ratio are solid indicators of market tops and bottoms.

Is is mart to invest un bitcoin? In conclusion we see Bitcoin maintaining it's current form with long term hodlers still not ready to begin collecting profits For the time being at least Hodler sentiment remains strong.