On-chain indicators continue to speak bullish language – despite the correction.
That was foreseeable: After the hype about the first approved Bitcoin ETF in the USA cooled down slightly, the relevant crypto currency Bitcoin also corrected significantly. From the interim high of 67,111 US dollars, the digital store of value is 7.6 percent away at the time of writing. However, BTC is currently still trading above the US $ 60,000 mark, which it was not until October 15 that it was exceeded again for the first time. At press time, a coin costs $ 62,600.
Under market watchers: inside, however, one does not throw the gun in the grain – on the contrary. Analysts like Will Clemente point out that corrections are simply necessary after the market overheats. Or in other words:
A look at on-chain data also shows that Bitcoin continues to have steam on the kettle. The MVRV Z-Score, for example, is just under 4, which is far below an overheated level. The indicator shows the win ratio of hodlers. These are on average more than 300 percent plus. It only becomes dangerous at a value of 7.
$ 300,000 Cycle Top?
The comparison with past Bitcoin cycles is also quite bullish. If digital gold takes a similar course as in Era 2 (orange chart), a price of 300,000 US dollars can be expected. Scaling Era 1 to the current price would even include a good 900,000 US dollars – but this is unrealistic from the current point of view, since a market capitalization of around 20 trillion US dollars would be necessary.
In terms of the Mayer Multiple, an indicator that sets the Bitcoin price in relation to the 200-day moving average, we cannot speak of overheating. Currently at 1.37, the value is still far from the critical level at 2.4.
The Puell Multiple also shows healthy price growth. The Puell Multiple is an indicator of the selling pressure on the part of the miners in the market. A value above 3 is a warning signal or top signal. The current value is below 2.
There is no other way to put it: on-chain data indicates positive market sentiment. The Bitcoin bull market still has significant room for improvement.
The altcoins are also looking good. Ethereum (ETH), the second largest cryptocurrency by market capitalization, is still surfing the wave of NFT hype and is even gaining more ground than Bitcoin on a weekly basis. Over a seven-day perspective, the smart contract platform posted a gain of 8.2 percent. In the case of BTC, however, it is “only” 2.1 percent. In the ranks of the top 10 coins, Solana (SOL) dominates this week, the price of the Eth competitor is 31 percent up on the previous week.