Bitcoin’s On-Chain Signal Indicates Early Stage of Bull Market, According to Glassnode
Analytics firm Glassnode has identified an on-chain metric for Bitcoin (BTC) that historically signifies the beginning of a bull market. The firm highlights Bitcoin’s long-term holder MVRV (LTH-MVRV), which tracks the behavior of long-term BTC investors, and notes that it has entered “high-risk” territory.
Glassnode shares a chart that indicates significant market expansion tends to occur when the LTH-MVRV signal is in the high-risk area. The indicator currently stands at 2.06 after the recovery since the FTX collapse, indicating the potential early stages of a bull market as long-term investors return to profitability.
Bitcoin Nearing “Euphoric Phase” of Bull Market
Glassnode also examines its Percent of Supply in Profit (PSIP) metric, which measures the proportion of coins with a cost-basis lower than the current spot price. The firm suggests that BTC is just a few thousand dollars away from entering an “euphoric phase” of the bull market.
When this indicator trades above the upper band, it historically aligns with the market entering the “Euphoric Phase.” During the recent market rally around the spot ETF launch, this metric reached very high risk levels, followed by a contraction down to $38,000.
Current Bitcoin Price
As of now, Bitcoin is trading at $48,302.
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