Despite Bitcoin’s price not yet returning to its all-time high from March, analysts believe the ongoing bull market remains robust, with no signs of a substantial dip based on two essential metrics.

In a recent report, researcher Axel Adler from CryptoQuant examined two significant indicators: the Bubble vs. Crush Market Structure and the MVRV Z-score. These metrics suggest that Bitcoin’s current price trajectory is following a sound trend.

“It appears that the ongoing bull cycle is progressing steadily without notable anomalies or drastic shifts,” noted Adler.

Bubble vs. Crush Market Structure Indicates No Bubble Forming

Adler pointed out that the Bubble vs. Crush Market Structure has decreased to a score of 1.02, which he considers a stable baseline, implying that Bitcoin (BTC) is not facing a bubble at this moment.

Bubbles typically occur when Bitcoin’s market capitalization grows at a faster rate than its realized capitalization. For example, when Bitcoin hit its last all-time high of $73,679, the indicator suggested a bubble with a score near 1.5.

Shortly after reaching that peak, the price dropped 16% to approximately $61,930, according to CoinMarketCap data.

Currently, Bitcoin is struggling to maintain the critical $60,000 threshold, a key level for traders to monitor. Since July 22, Bitcoin’s price has fluctuated within a 40% range, dipping to $49,842 and peaking at $69,799.

As of now, Bitcoin is trading at approximately $59,236.

Adler also mentioned that the 30-day Moving Average (DMA) MVRV Z-Score stands at 1.8, marginally above the annual average of 1.6, indicating “minimal overvaluation.”

When the 30DMA MVRV Z-Score increases, it can signal to traders that the asset is potentially overvalued and a price correction might occur.

For instance, in March 2021, this score surpassed 5, shortly before Bitcoin reached $60,701. However, the asset later fell 45% to $32,827 by July.

Both metrics, Bubble vs. Crush and the MVRV Z-score, serve as tools to assess whether Bitcoin could be labeled as “overvalued.”

“As long as these metrics do not hit extreme levels that may suggest a heightened risk of correction, the market can be viewed as bullish,” Adler added.

Several traders have been discussing Bitcoin’s prolonged phase of consolidation recently.

“We are in a monotonous phase, a typical period before and after the halving,” commented a crypto trader known as Ash Crypto in a recent post.

Another trader, Rekt Capital, noted that Bitcoin is “on the verge of retaking its Post-Halving ReAccumulation Range,” indicating potential upward movement in the upcoming months.

This content is not intended as investment advice. All trading activities carry risk, and individuals should perform thorough research prior to making financial decisions.