Bitcoin has seen a strong rally in the past few days, placing the coin at $ 37,000 and hitting $ 40,000 on the day yesterday. So of course the question “Is this a cop run?” Comes to mind. Given what on-chain metrics and analysts are saying, the answer may not be what one would expect.
Bitcoin in the bull run?
Bull runs can be both short and long term, but your perspective may vary depending on what type of investor you are. However, based on the movement registered by several metrics on the daily chart, Bitcoin appears to be in good shape. Since July 20th, the king coin has risen by 25.19% and the movement in price movements has also been reflected in the metrics. Realized gains showed the biggest jump of all as the indicator rose by $ 2.3 million. This is calculated based on comparing the price of the coins when they were last moved with their current movement price.
Realized gains were just $ 214,027 prior to July 26, compared with the same gains yesterday at $ 2.5 million. This shows that Bitcoin is much more profitable right now than it will be in almost 80 days. In addition, the number of active addresses also increased, as more people became active as prices rose.
These many addresses were last active on July 3rd. This positive move was aided by the MVRV (Market Value to Realized Value) ratio, which indicates whether the coin has fair value or not. The indicator was at a 43-day high when Bitcoin appeared to be profitable.
All of these factors are a clear indication of a short-term bull run. But your buying and selling goals are also important.
Entry and exit points
Analyst Tone Vays in his most recent analysis highlighted the key zones that are important to both Bitcoin and investors to get the most out of this bull run. He indicated 2 zones as such. The first was $ 40,000 touched during yesterday’s trading. As soon as BTC closes above $ 40,000, a consistent upward movement for the king coin may become possible.
Second, the 200-day MA and the 50-day MA are both currently in a position of resistance. In order to support this bull run, these 2 levels have to be converted into support. He concluded his analysis and repeated:
“I see this as a bull market … Just like my Twitter says, I expect $ 100,000 by the end of the year.”