As the current cycle becomes the longest bear market in cryptocurrency history, many Bitcoin holders have no choice but to wait. At some point, it seemed like the worst was over.
But almost every time it looks like that, another pullback occurs. As a result, the broader cryptocurrency market capitalization has struggled to break out of the $1 trillion range.
Recently, Bitcoin reclaimed $27,000 and maintained this level as of press time. However, Santiment revealed there could be another correction, as market participants may engage in another round of profit-taking.
Huge potential for BTC
But on the positive side, whales have been accumulating BTC and USDT. Normally, Bitcoin accumulation tends to go up.
Additionally, as stablecoin accumulation like USDT increases, it means market participants have large purchasing power, which could benefit BTC in the long run.
The metric used to evaluate Bitcoin’s long-term prospects is the Market Value to Real Value (MVRV) ratio. The MVRV ratio is the ratio of a cryptocurrency’s market capitalization to its actual value.
While it helps provide information about a trader’s buying and selling behavior, it can also help identify tops and bottoms. At the time of this writing, the 7-day MVRV rate had increased to 1.96%. This is due to the recent increase in BTC price.
However, a price correction could cause the metric to drop to zero. If this happens, whales and stablecoin holders in waiting could increase the buying pressure on BTC. This will therefore lead to another price increase.
Another indicator to pay attention to is idle circulation. At the time of writing, Bitcoin’s 90-day dormant circulation has dropped to 3,147. This metric looks at the performance of coins that have not moved in a long period of time.
The decline in inactive circulation implies that most long-term holders have refrained from selling. If that remains the case, Bitcoin could perform excellently in the coming months/years.
Long term holder equipped and ready
Interestingly, Bitcoin’s 90-day Average Coin Age (MCA) has increased since August. MCA is the average value of all coins on the blockchain, calculated by average purchase price.
The explanation for this increase is that market participants have significantly stored Bitcoin in cold wallets.
With the price of BTC noticeably flat, one could interpret this to mean that holders are equipped to engage in major trading activity whenever the bull market returns.
Andrew Kuznetsov, co-founder and CTO of Islam Coin, talked about the potential of Bitcoin. According to Kuznetsov, the halving in April 2024 could push Bitcoin to a new all-time high (ATH).