Bitcoin “still not overheated” — analystBitcoin is not showing any signs of being overheated despite reaching new all-time highs this week, with several analysts pointing to fundamentals suggesting Bitcoin could rise further.“Overheating indicators such as the funding rate and short-term capital inflow remain low compared to previous peaks, and profit-taking by short-term investors is limited,” said CryptoQuant analyst Crypto Dan in a May 22 Quicktake note. Crypto Dan pointed out that Bitcoin’s funding rate, an indicator of market overheating, shows an increase in long bets.
CryptoQuant’s Crypto Dan expected Bitcoin to continue rising higher, noting:“Overall, the Bitcoin market is still in a healthy upward phase.”Meanwhile, Bitcoin’s MVRV Z-score value — a metric that compares BTC’s market value to its realized value and adjusts for volatility — has seen a notable surge over the last month. Historically, all previous Bitcoin bull runs started with a notable surge in MVRV Z-score and ended with the metric entering the red zone (see chart below) to signal that Bitcoin is significantly overvalued.At 2.8, the MVRV Z-score is still significantly below the red zone, suggesting that the market top is not yet in.
Meanwhile, the short-term holder (STH) Spent Output Profit Ratio (SOPR) metric reveals that despite STHs returning to profit, few have taken profits during the recent rise. This indicator is currently valued at 1.02%, suggesting that STHs are realizing some profits at much lower rates.“In March 2024, there was significant profit-taking and a prolonged correction, but currently, profit-taking is much lower than in November 2024,” the analyst explained, adding that despite the price at all-time highs, whales’ profit-taking activity remains relatively subdued.
or
Share This Story
Article Details
Author / Journalist: Cointelegraph by Nancy Lubale
The story "Bitcoin's new all-time high has traders asking: Is BTC price overheating at $111K?" has 663 words across 30 sentences, which will take approximately 3 - 6 minutes for the average person to read.
Which news outlet covered this story?
The story "Bitcoin's new all-time high has traders asking: Is BTC price overheating at $111K?" was covered 18 hours ago by Coin Telegraph, a news publisher based in United States.
How trustworthy is 'Coin Telegraph' news outlet?
Coin Telegraph is a fully independent (privately-owned) news outlet established in 2013 that covers mostly crypto news.
The outlet is headquartered in United States and publishes an average of 33 news stories per day.
It's most recent story was published 7 hours ago.
What do people currently think of this news story?
The sentiment for this story is currently Negative, indicating that people regard this as "bad news".
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.
