In-Depth Analysis of Bitcoin Data and On-Chain Overview
Bitcoin is showing signs of potential growth in 2025, raising questions about the sustainability of the current bullish trend. Taking a data-driven approach, we’ll examine key indicators that support this positive outlook.
For a more detailed analysis, watch our recent YouTube video on Bitcoin Data Driven Analysis & On-Chain Roundup.
Miner Recovery
The Puell Multiple, which compares miners’ daily USD revenue to the yearly average, indicates Bitcoin’s fundamental network strength is robust. The recent increase in the Puell Multiple above 1 suggests a recovery and a possible bullish phase.
Previous cycles have shown that crossing and retesting the value of 1 often precedes significant price rallies, reinforcing strong market support from mining activity.
Substantial Upside Potential
The MVRV Z-Score, analyzing Bitcoin’s market value relative to its accumulated value, indicates current values are below historical peak regions, illustrating room for growth.
A two-year rolling version of the MVRV Z-Score also shows bullish potential, indicating Bitcoin is still below previous cycle peak levels, leaving room for further price appreciation.
Sustainable Sentiment
The Bitcoin Fear and Greed Index currently reflects a healthy level of Greed sentiment, suggesting sustainable market sentiment. Historical data from the 2020-2021 bull cycle shows that greed levels around 80-90 can persist for months, supporting prolonged bullish momentum.
Network Activity
The Active Address Sentiment Indicator shows a slight decline in network activity, indicating that retail investors have not yet fully entered the market. This could suggest untapped retail demand that could drive the next phase of the rally.
Risk Appetite Shifts
Traditional market sentiment is improving, with an increase in High Yield Credit appetite as the macro-economic environment shifts to a more risk-on outlook. Historically, there is a strong correlation between Bitcoin’s performance and periods of heightened global risk appetite, aligning with bullish phases in Bitcoin’s price.
Conclusion
Based on on-chain metrics, market sentiment, and macro perspective, Bitcoin appears poised to continue its current bullish trend. While short-term volatility is possible, the convergence of these indicators suggests Bitcoin is well-positioned to potentially exceed its current all-time high in the near future.
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Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.
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