Last week, the Bitcoin market reached a new all-time high of $92,326.13. Currently, the market is steadily inching upwards, and many investors anticipate further growth. Let’s explore key metrics to understand potential market opportunities.
MVRV Ratio: A Signal for Market Tops
Right now, the MVRV Ratio sits at the range of 2.05. In mid-March, when the market crossed $73,000, it was at 2.75. If the ratio exceeds 2.75, it could indicate a market top.
Fear and Greed Index: Understanding Market Sentiment
The crypto fear and greed index currently remains at 83, indicating extreme greed among investors. It is advisable to reassess risk management strategies as such levels often precede a price correction.
Long-Term Holders Selling: Bitcoin CDD
The Bitcoin Coin Days Destroyed index now stands at 36,654,904. An abnormal spike in this index can indicate sales from long-term holders, suggesting their belief in no further growth.
Key metrics like MVRV, Fear and Greed index, CDD, and IFP provide valuable insights into understanding the dynamics of the Bitcoin market.
