45 On-Chain Data Insights: Bitcoin’s Recovery Phase and Bull Market ConfirmationIntroduction:In the world of cryptocurrency, skepticism and fear of uncertainties are common. However, ignoring fundamental on-chain data would be a mistake. Let’s examine two crucial on-chain datasets, the MVRV (Market Value to Realized Value) and Average Realized Price, to gain insights into Bitcoin’s current market phase.Short-Term Supply Groups (1 day to 6 months): a. Historical Bear Market Behavior:During bear markets, Bitcoin’s market price consistently remains below the 1D-6M Average Realized Price, acting as absolute resistance. Conversely, during recovery phases transitioning to a bull market, this level becomes a solid support, aiding in price recovery.b. Short-Term MVRV (1D-6M) Indicator:The Short-Term MVRV (1D-6M) acts as the boundary between bullish and bearish sentiment. Whenever Bitcoin’s price approaches this indicator, positive responses are observed, reinforcing its significance in price movements.Medium-Term Supply Groups (6 months to 2 years): a. Confirming Bull Market Phases:Similar to short-term analysis, the Medium-Term Average Realized Price plays a crucial role in confirming bull markets. For Bitcoin to enter a bull market officially, it requires a sufficient accumulation period to gather momentum and break through this mid-term resistance.b. Medium-Term MVRV (6M-2Y) Indicator:As with its short-term counterpart, the Medium-Term MVRV (6M-2Y) indicator serves as the boundary separating bearish and bullish conditions.Read More CryptoNews: 8 Years of HODLing Ethereum | Cryptocurrency Market Plunges | BTC USDT Technical Analysis Chart OverviewCurrent Market Analysis:At present, we observe similarities between the current market phase and the recovery phase around late 2015 and early 2016. For Bitcoin to solidify its return to a bull market, it needs a prolonged accumulation period to overcome the medium-term average realized price resistance.On-Chain Data:Short-Term Supply Group Data: STH Avg Realized Price: $28,000 STH MVRV: 1.04 Medium-Term Supply Group Data: Medium-term Avg Realized Price: $30,300 Medium-term MVRV: 0.96Conclusion:Considering the historical behavior of Bitcoin’s market phases based on the MVRV and Average Realized Price, the current data indicates a potential recovery phase and an impending return to the bull market. However, a sustained accumulation period is necessary to gain enough momentum to overcome the medium-term resistance. Monitoring short-term data for positive responses can provide additional insight into Bitcoin’s price movements during this crucial juncture. As always, on-chain data should not be ignored as it provides valuable insights into the cryptocurrency market’s underlying fundamentals.Follow us for More Quality Analysis. Thank you.Telegram:- https://t.me/OfficialCryptoPatel Twitter:- https://twitter.com/CryptoPatel
