Key Points
- Bitcoin’s long-term outlook remains bullish with the potential for further price gains.
- Older Bitcoin holder groups have not shown intense selling activity, indicating expectations of a price rally.
Bitcoin’s recent surge past the $67k resistance has temporarily stalled. Last week, the cryptocurrency reached a high of $72k on May 21st, but has since dropped by 5.7% to trade at $67.8k.
A report exploring the demand for Bitcoin-backed investment products found that the majority of inflows are coming from the United States. Despite the recent dip, the long-term outlook for Bitcoin remains bullish.
Analyzing Bitcoin’s Value
Crypto analyst Axel Adler used the Bitcoin MVRV Z scores to demonstrate that the current cycle is only halfway done. The MVRV metric evaluates whether Bitcoin is overvalued or undervalued by comparing its market value to its realized value.
In previous cycles, an MVRV-Z score of 7 or above has indicated cycle tops. This run saw the metric climb as high as 3.07, suggesting that further price gains are likely in the coming months.
Bitcoin Holder Activity
Bitcoin holders aged six months and older were particularly active on February 28th. The 3-6 month age band showed significant profit-taking activity.
In contrast, the 1-3 month-long holders have been notably active in the market over the past two months. These holders registered a surge of selling on May 21st, when prices climbed above $70k.
However, most older holder groups did not exhibit intense selling activity to exchanges in April and May. This lack of selling activity is likely due to expectations of a post-halving price rally that hasn’t yet materialized.
