Since Bitcoin (BTC) tapped $6,500 in late-November, analysts have been wondering if the bottom is really in. You see, the leading cryptocurrency bounced by 20% from $6,500, hitting $7,850 just a week back.<\/p>\n
While some say that the fact that Bitcoin failed to crack the key resistance near $8,000 is decisively bearish, analytics companies in the industry are starting to believe that a bottom is forming.<\/p>\n
On-chain market intelligence firm Glassnode recently observed<\/a> that there is a confluence of factors suggesting that the Bitcoin bottom is forming, if not here already.<\/p>\n They first noted that the Market Value to Realized Value (MVRV), the ratio between market cap and realized cap, is “consolidating towards one,” which implies that gains are being realized by Bitcoin investors. A one reading of the ratio often marks a bottom for the cryptocurrency market.<\/p>\n 1\/ Weekly on\u2013chain market observations:<\/p>\n The bottom is close \u2013 and once it happens, the reversal will be strong. <\/p>\n MVRV is consolidating towards 1, which historically has indicated the bottom of #Bitcoin<\/a> market cycles. Patience is key.https:\/\/t.co\/lv8knFD0wV<\/a> pic.twitter.com\/7kwckER6Ri<\/a><\/p>\n — glassnode (@glassnode) December 7, 2019<\/a><\/p><\/blockquote>\n\n