After the harsh crypto winter of 2022, it seems that the trend is finally turning around and we can now talk regarding soaring in 2023. At the moment of writing this article, the bitcoin exchange rate is already significantly above 28 thousand dollars and the hodlers can start pocketing the profit nicely. Moreover, not only long-term, persistent hodlers, but also short-term investors. According to the analysis of the crypto analysis company Santiment, considering a one-year interval, the average return of bitcoin holders entered the favorable zone for the first time.
Could a Bitcoin crash come before the bull market?
According to another analyst firm, 72% of bitcoin holders are currently making a profit at the current exchange rate and only 26% are at a loss. However, this does not mean that there is now a clear bull market in the bitcoin market. The Market Value to Realized Value (MVRV) indicator shows that bitcoin is now slowly ending its bear cycle. The long/short divergence line usually crosses zero when a specific bitcoin cycle has ended and a new bull cycle has begun.
As you can see in the chart, the line has just crossed the 0 value. Let’s add that this is not surprising. After all, the MVRV is a rate that is determined using the realized price. By the way, Santiment’s analysis points out that there will probably be another drop before the price really shoots up. And to add another good confirmation to this. ChatGPT, the artificial intelligence that is so popular these days, also thinks that the bull market is here. Although we should not attach great importance to this. After all, they asked him whether the rise from $15,500 to $27,000 is considered a bear market in a given period. The answer to this is quite self-explanatory.
