CryptoQuant’s recent on-chain analysis suggests that the altcoin market may be on the verge of growth, with Ethereum’s Market Value to Realized Value (MVRV) indicator showing a faster rise than Bitcoin’s. A representative from CryptoQuant commented on social media platform X, stating that the rapid rise in Ethereum’s MVRV suggests that the ETH market is heating up, historically leading to other alternatives following suit.
MVRV is a tool used to determine whether a digital asset is undervalued or overvalued by comparing the token’s market capitalization with the realized capitalization. Ethereum is currently trading at $3,478.60, despite a week of predominantly sideways trading, remaining the second largest crypto asset by market value.
On the other hand, the situation for Bitcoin appears less promising. CryptoQuant noted that BTC is trading below crucial support at $65,800, indicating a potential near-term price correction of 8% to 12% towards $60,000. As of the time of writing, Bitcoin trades at $64,148, down almost 1.5% in the last 24 hours and more than 3% in the previous week.
Julio Moreno, head of research at CryptoQuant, made additional observations on Platform X, indicating that the Bitcoin market is at its least optimistic point since September 2023, based on the market’s bull cycle indicator.
It’s important to note that the views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.