Bitcoin traders should know this before making their next trading decision

• According to CryptoQuant’s latest analysis, BTC’s MVRV ratio crossing 1.5 could be a sign of a bullish wave.
• However, at the time of writing, BTC’s RSI was putting up a neutral front and showing no bullish momentum.

Now as the fear of Bitcoin [BTC] being crippled by the results of the FOMC was out of the way, investors could have something to look forward to.

According to an analysis by CryptoQuant analyst onchained, BTC’s market value to realized value (MVRV) fluctuated between 1.55 and 1.45. This can be taken as a healthy sign of a bull run.

So how does BTC’s MVRV ratio floating between 1.55 and 1.45 relate to BTC’s bullish wave? Let’s find out…

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The importance of 1.5

According to the CrytpoQuant analysis, the 1.5 threshold acts as Bitcoin’s entry point into a bull run. The analyst also stated that by examining historical data, it was seen that BTC’s MVRV ratio is witnessing a change when it breaks the 365D Simple Moving Average (SMA).

Furthermore, a bull run can be expected when the MVRV ratio breaks the moving average in an uptrend. Thus, the MVRV ratio reaches a point between 2 to 3.75. The analyst also stated that BTC’s 365DSMA as of May 4 was flat. This was because the MVRV ratio managed to break the 1.5 level.

Source: CryptoQuant

Are we following the bull ride?

At press time, data from Santiment showed that BTC’s social dominance witnessed a drop in recent days. The cryptocurrency’s social dominance also managed to witness quite a few highs and lows in recent months.

However, the total number of BTC holders witnessed a straight rise and stood at 46.46 million at the time of writing. The increase in the number of holders was certainly a positive indicator that investors had faith in the royal coin.

At press time, however, the weighted sentiment managed to remain low at -0.129 despite an increase since late April.

Source: Sentiment

At the time of writing, BTC’s funding rate painted a positive picture for the cryptocurrency. Long traders dominated the market in the last 24 hours as per the chart below. Furthermore, the taker-buyer-seller ratio also favored buying sentiment in the derivatives market.

Source: CryptoQuant

Not so rosy here

Despite the positive picture painted by the aforementioned information, BTC’s Relative Strength Index (RSI) did not perform at its best. At the time of writing, BTC’s RSI stood slightly above the neutral position of 54.

While the good news was that the RSI stayed above 50, a downside could be that BTC could turn bearish in the absence of enough momentum.

Furthermore, Stochastic RSI also stood at a neutral position of 58.

Source: CryptoQuant

How much is 1,10,100 BTC worth today?

According to data from CoinMarketCap, although BTC traded 1.27% higher in the last 24 hours, it traded hands 3.42% lower than in the last seven days.

However, the CryptoQuant analyst stated that if BTC manages to break past the $30k level, BTC’s MVRV ratio could shift rapidly. Additionally, the MVRV ratio would then be expected to be anywhere between 1.8 and 2. This could act as a much-needed bullish momentum for BTC.