These Metrics Suggest Bitcoin Still Has Room to Grow, According to Glassnode Founder

Bitcoin (BTC) is currently worth around $94,000 after trading above $108,000 earlier this week. While traders continue to make profits, analysts believe the cryptocurrency still has room for growth.

According to an thread According to Rafael Schultze-Kraft, co-founder of on-chain market intelligence platform Glassnode, more than 20 charts and metrics suggest that BTC has not yet reached its peak for this cycle.

More room for growth

The market value to realized value (MVRV) metric, which measures unrealized profitability, is currently around 3. Historically, this indicator has signaled overheating above 7; Therefore, there is still room for BTC to grow. Furthermore, MVRV’s upper price band, which is obtained by calculating the number of days that MVRV has traded at extreme levels, is currently at the 3.2 level.

Schultze-Kraft mentioned that analyzing long-term holder (LTH) profitability metrics, such as relative unrealized profit and net unrealized profit/loss of LTH, can provide insight into the risks of profit-taking. . These metrics have just entered the euphoria zone, reaching the 0.75 level. In 2021, BTC rallied about 3 times after the indicators entered this zone and peaked when it reached 0.9+.

Another metric to keep in mind is the annual realized profit and loss ratio, which monitors coin spending among investors. The founder of Glassnode revealed that this indicator peaked at over 700% in previous cycles, however, it is currently around 580%.

One more indicator to take into account is the relationship between market capitalization and thermocap, which is not close to the previous extremes. Historical data has shown that BTC highs occur when this metric reaches a multiple of 32-64; however, the metric currently sits at the bottom of this range. The upper band of this metric will put Bitcoin’s market capitalization above $4 trillion.

BTC peaks at $230k?

Furthermore, the investor tool’s metric suggests that BTC could reach $230,000. The Bitcoin price temperature indicator contradicts this suggestion, but places a high for BTC at $151,000.

Additionally, the days of value destroyed multiple, which compares short-term coin days of destruction to the annual average to determine the growing expenditure of older coins that eventually dominate demand, stands at 2.2. With previous extreme values ​​above 2.9, the indicator suggests room for growth.

Schultze-Kraft listed other metrics and charts, including the Mayer Multiple, the Cycle Extremes Oscillator Chart, the Pi Cycle Top Indicator, the LTH Inflation Rate, the Sell-Side Risk Index, and the benefit from the short-term fork’s spent production.

While these indicators have placed bitcoin’s cycle high at different levels, they all suggest that the digital asset is only halfway through this bull run.