Bitcoin Momentum Indicator Flashes Bullish Signal
Bitcoin's momentum indicator has crossed a threshold that Glassnode also observed near the start of the 2019 and 2023 bull markets, according to blockchain analytics firm Glassnode. The same crossover appeared near the start of the 2019 and 2023 bull markets.
The ratio, known as MVRV, compares Bitcoin's market value with the estimated value of coins based on when they last moved. Crossing its annual average means the ratio has risen above its own recent trend.
Glassnode wrote: 'This is the same cross that we saw in 2019 and 2023 at the beginning of each bull market.'
The signal arrived as Bitcoin recovered from this year's lows and briefly reclaimed $87,000 this week for the first time since January. Its price advance makes the crossover more relevant to traders, but the indicator measures a change in the relationship between market value and holders' estimated cost basis.