Bitcoin looks poised for a major upside move after a strong start to 2025. However, questions remain about the overall health of the market and whether the current trend can be sustained in the coming weeks and months. we are ahead. Here, we take an unbiased and data-driven look at the underlying numbers that support our current trend.
For a more in-depth look at this topic, check out a recent YouTube video here: Bitcoin data-driven analysis & on-chain aggregation
Miner's Revival
The Many Puellsa measure that compares the daily USD income of miners to their annual average, suggesting that the strength of the underlying Bitcoin network remains strong. Historically, after a halving event, miners' incomes experience a significant reduction due to a 50% block reward reduction. However, the Puell Multiple recently climbed above the key value of 1, indicating recovery and a potentially optimistic level.
The previous cycles show that crossing and retesting the value of 1 often precedes major price rallies. This pattern is repeating itself, indicating strong market support from mining activity.
Substantial upside potential
The MVRV Z-ScoreA metric that analyzes Bitcoin's market value compared to its realized value, or the average cumulative price for all BTC, suggests that current values are still well below historical levels. height, defining a lot of room for growth.
A a two-year follow-up version of the MVRV Z-Scorewhich adjusts for changing market dynamics, also shows bullish potential. Even with this adjusted rate, Bitcoin is far from the highs of the previous cycle, leaving the door open for further price appreciation.
Related: We Recap the 2017 Bitcoin Bull Cycle
Persistent Consciousness
The Fear and Greed Bitcoin Index currently at a healthy and stable level of greedy attitude, showing a greedy but stable mood. Historical data from the 2020-2021 bull cycle shows that leverage levels around 80-90 can persist for months, supporting a long bullish trend. It is only when values approach extreme levels (95+) that the market usually reacts to major corrections.
Network function
The Active Address Sentiment Indicator shows a slight decrease in network activity, suggesting that retail investors have not yet fully re-entered the market. However, this could be a good sign, revealing untapped selling demand that could fuel the next phase of the rally.
Changes in risk exposure
Traditional market sentiment is showing better signs. High yield credit appetite increases as the macroeconomic environment shifts to a riskier outlook. Looking at corporate bonds that offer higher interest rates due to their lower credit ratings compared to investment grade bonds. Historically, there has been a strong correlation between Bitcoin's performance and periods of heightened global risk appetite, which have often coincided with bullish levels in Bitcoin's price.
Related: What Bitcoin price history predicts for February 2025
Decision
Bitcoin on-chain metrics, market sentiment, and the macro outlook all point to a continuation of the current bull market. While short-term volatility is always a possibility, the convergence of these indicators suggests that Bitcoin is well positioned to reach and potentially surpass our current high now soon.
For more detailed Bitcoin analysis and to access advanced features such as live charts, personalized indicator alerts, and in-depth business reports, check out Bitcoin Pro Magazine.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.
