CoinLupin
Predicting Bitcoin Market Transition from Recovery to Bullish Phase with MVRV 4yMA
- The transition from a bearish to a bullish phase in the Bitcoin market does not happen all at once, and during the recovery phase, small overheating can occur, followed by a period of consolidation. - MVRV 4yMA is an indicator that discerns undervaluation and overvaluation of Bitcoin by comparing realized price and market price. - MVRV 4yMA is known to remain stable around 1.7 when the 4-year cycle average of Bitcoin is used. - The 4-year average value of relative valuation can act as an important point between bearish, recovery, and bullish cycles, with a breakout of this range during the recovery phase often leading to short-term overheating followed by a correction period before entering a bullish phase. - Currently, we have not yet fully completed the recovery phase, but the situation allows for consideration of further upside potential. - However, it's also true that the transition to a bullish phase may not happen immediately, so it's important to be prepared if a breakout of MVRV 4yMA occurs. - Regardless of the current price movement, it's necessary to proactively think and prepare. Keep monitoring MVRV 4yMA consistently.