According to crypto expert Ali Martinez, Sentiment’s MVRV indicator is indicating a decline in the price of bitcoin, as it has done in the past.
Bitcoin’s MVRV 365d fell to -56.85% in January 2015 and -55.62% in December 2018 respectively. This signals the end of the bearish trend. The metric peaked at 50.09% in mid-June and is now at 48.23%.
The MVRV (Actual Value to Market Value) ratio indicates whether an asset is overpriced or undervalued.
Bitcoin Price Might Surrender to Bears
According to Glassnode, the bitcoin price has experienced two distinct submission periods since reaching the November 2021 high of $69,000.
The Luna Foundation Guard Force sold around 80,000 BTC in the first phase, and the next phase, in the midst of a market collapse two weeks ago.
Cryptocurrency researcher and trader Alex Kruger believes that bitcoin may have surrendered to the market collapse two weeks ago. The expert highlighted the possibility that there was an increase in trading volume during this period, indicating capitulation and a significant drop.
The formation of a bearish trend in the previous phases is linked to the current state of bitcoin’s macro signals, ranging from technical to on-chain and all-time lows.
Nevertheless, given the current macroeconomic situation, all hypotheses and past patterns may be tested when determining a bearish market bottom for Bitcoin.
Acquisition of 30,000 bitcoins to increase balance
According to crypto strategist Ali Martinez, accounts with between 100 and 10,000 BTC have acquired around 30,000 BTC in their current portfolio in the past seven days.
During the extraordinarily harsh market conditions of 2022, Glassnode revealed that accounts with less than one BTC or more than 1,000 BTC were collected with whales.
According to the on-chain research firm, these large firms have begun to aggressively expand their positions, buying 140,000 BTC from exchanges every month.
As a result, their balance has increased to about 8.69 million BTC, or 45.6% of BTC in circulation. Additionally, retail investors or accounts holding less than 1 BTC increased their assets by 113,884 BTC in 2022.