Bitcoin bull market is still alive: On-chain signals predict further gains

Bitcoin continues its bullish trend with on-chain signals demonstrating strong support from long-term holders, according to CryptoQuant experts.

Bitcoin's on-chain metrics reflect a positive trend for the cryptocurrency, supported by solid foundations that support its development. A detailed analysis of key indicators, such as the MVRV ratio and the behavior of long-term holders, demonstrates the continued confidence among market participants.

According to CryptoQuant experts, this data confirms that Bitcoin has solid support, which could lead to continued growth in the coming months.

The MVRV ratio as an indicator of stability in Bitcoin

Among the signs that support the strength of the market is the MVRV (Market Value to Realized Value) ratio, a metric that compares the total market value with the average acquisition cost for current investors. Currently, This ratio is around a level close to 2,0, a point that, according to specialists, marks a delicate balance between buyers' enthusiasm and the necessary caution after boom times.

Historically, when the MVRV ratio is in this range, it indicates that Bitcoin holders are enjoying considerable profits, but also that the market is beginning to cool off after a period of intense activity. This pause is not a sign of weakness, but rather a natural mechanism that has repeated itself in previous cycles. When the MVRV stabilizes after a strong push, the market usually enters a consolidation stage, an essential process for “digesting” accumulated profits and avoiding abrupt movements, paving the way for future phases of more solid growth.

The indicator's recent movements accurately reflect this classic behavior. Currently, the market appears to be in the midst of that orderly adjustment that analysts expect when looking for firm grounds for Bitcoin to continue its positive advance in the long term. This pattern conveys a message of patience and trust, remembering that after every impulse comes a pause that strengthens the market structure.

The trust of long-term holders, a fundamental pillar

Other aspect highlighted According to CryptoQuant analysts, this is a decrease in selling activity by long-term holders, i.e., those investors who hold their bitcoins for months or years. These users are showing a low level of profit-taking in the current situation, which translates into a lower supply available for sale on the market. 

Consequently, the lower willingness to liquidate positions favors a context where increased demand can positively impact the price of Bitcoin.

Additionally, the confidence shown by these holders has been instrumental in Bitcoin's ability to sustain and prolong its bullish cycles throughout its history. Their reluctance to sell during consolidation phases indicates a positive expectation about the asset's continued growth, which in turn reduces selling pressure and brings stability to the market.

Similarly, these dynamics are reminiscent of patterns observed at key moments in previous cycles, such as in 2017 and 2020, when Bitcoin experienced price pauses before experiencing new, more powerful surges. The combination of a balanced valuation with the steadfastness of this group of investors suggests that the current cycle remains active and has not yet reached its conclusion.

Bitcoin strengthens with balanced demand

Bitcoin's recent price pullbacks should not be seen as the end of its bull run, but rather as a natural part of a process of profit-taking and consolidation. 

Expert analysis shows that it's common for the market to take time to digest and establish a solid foundation that will allow for stronger upward movements in the future after significant gains. In this sense, the overall dynamic continues to point to sustained and healthy growth for the global market's leading cryptocurrency.

Furthermore, the analysis in question also shows the steadfastness and commitment of long-term holders, who act as a pillar of resilience, helping to mitigate the impact of temporary fluctuations in the BTC price. 

Considering these factors, analysts say the Bitcoin bull market remains active, setting the stage for potential upside in subsequent phases of the market cycle.