Bitcoin's recent price adjustment signals a mid-cycle revaluation rather than an end to the ongoing bull market, according to insights from CryptoQuant's analyst CryptoZeno. 'Long-term holders are displaying resilience and commitment during this correction,' he stated while analyzing the market metrics.
Currently trading at $64,500, Bitcoin has seen a 4% increase in the last 24 hours but is still down 49% from its all-time high. CryptoZeno emphasized that holders who have maintained their investments for six months to ten years are demonstrating patience by not rushing to liquidate their assets. The adjusted Market Value to Realized Value (MVRV) metric remains well below thresholds known to indicate significant profit-taking among long-term investors, suggesting instead that the market is entering a healthier phase.
Moreover, the analysis revealed that the average acquisition price for these long-term holders is increasing, a sign that the current downturn may largely reflect broader market weakening instead of selling pressure from experienced investors. In this context, the correction can be seen as a strategic adjustment, helping to relieve short-term speculation while retaining long-term investments.
In another finding, the Adjusted Net Unrealized Profit/Loss (NUPL) metric indicates that unrealized profits across the Bitcoin network have reset closer to neutral after the recent downturn. Historically, such a reset has been linked to market corrections rather than the onset of a prolonged bear market. While long-term holders maintain a strong position despite diminished profits, short-term investors are facing pressure to sell amid fluctuating market sentiment. CryptoZeno summarized his perspective, stating that the combined readings of MVRV and NUPL reflect a healthy profit reset, not capitulation.
This material is informational and should not be considered financial advice.
