As shared by Crypto Analyst Ali MartinezSentiment’s MVRV index, which timed bitcoin’s market lows over the past two bearish cycles, is shining once again. Bitcoin’s MVRV 365D fell to -56.85% and -55.62% in January 2015 and December 2018, respectively, marking the end of the bear market. This indicator peaked at 50.09% in mid-June and currently sits at 48.23%.
#bitcoin , The MVRV Index timed the market bottom in the last two bearish cycles.
In January 2015, #B T c The MVRV 365D fell to -56.85% to mark the end of the bear market, reaching -55.62% in December 2018. $BTC MVRV 365D hit -50.09% in mid-June and currently sits at -48.23%. pic.twitter.com/3M5LK8BgFZ— Ali Martinez (@ali_charts) 4 July 2022
MVRV (Actual Value to Market Value) gives an idea of how over or undervalued a property is.
According to Glassnode, the bitcoin market has gone through two distinct capitulation phases after peaking at $69,000 in November 2021. The first phase was triggered by the Luna Foundation Guard force selling over 80,000 BTC, and the second occurred two weeks ago during a market downturn.
alex krugerThe crypto-analyst and economist, too, believes that bitcoin may have surrendered during the market downturn two weeks ago. The analyst cited the fact that trading volume was at its peak at this time, indicating capitulation, which created significant bottoms.
The formation of the bear market floor over the past cycles is in line with the current state of macro indicators for Bitcoin, ranging from technical to on-chain, which are at all-time lows. However, due to the current macroeconomic environment, all theories and historical models may be tested when setting up a bear market floor for Bitcoin.
Bitcoin Adds 30,000 BTC to Whale Holdings
As shared by crypto analyst Ali Martinez last week, addresses holding between 100 and 10,000 BTC added about 30,000 BTC to their holdings.
In the past week, Glassnode reported that shrimp, or addresses with less than one BTC, are piling up with whales, or addresses with more than 1,000 BTC, amid the incredibly difficult market conditions of 2022.
The on-chain analytics firm noticed that these large entities were rapidly increasing their balances, buying 140,000 BTC from exchanges every month. Thus they have increased their balance to 8.69 million BTC, or 45.6% of the BTC supply. As reported by U.Today, retail holders or addresses holding less than 1 BTC added 113,884 BTC to their holdings in 2022.
At press time, bitcoin was trading slightly higher at $19,438.