CryptoQuant, a leading cryptocurrency analysis firm, recently shared its views on the current state of the Bitcoin market.
Over the past two years, the Bitcoin market has experienced a significant increase, which has also affected the prices of other cryptocurrencies. This period has been more promising compared to the bear market in 2021 and 2022.
To predict the current state of the Bitcoin market, CryptoQuant analysts resorted to one of the most effective modern tools, the 60-Day Realized to Market Value Variance (RCV) metric. This metric measures the two-month change in Bitcoin's cap relative to its market cap, making it extremely useful for long-term decision making and investing with the Dollar-Cost Averaging (DCA) model.
According to this metric, Bitcoin has reached the risk zone. However, there is still potential for the market to move higher, such as 0.70. While it is impossible to predict the future with certainty, analysts suggest that an increase in demand around the 0.50 level in the metric could behave similarly to 2017 and potentially create a new long-term high for Bitcoin.
*This is not investment advice.
