CryptoQuant Researcher: Two Key Indicators Show Bitcoin Bull Market Cycle is Developing Steadily

On August 21, CryptoQuant researcher Axel Adler focused on two key indicators in a recently published report: Bubble vs. Crush market structure and MVRV Z-score, as signals that the current price trend of Bitcoin is developing in a healthy direction. Adler added, "We can see that the current bull market cycle is developing quite steadily without any obvious anomalies or significant jumps." He emphasized that the first indicator has dropped to 1.02 points, which he considers as "the baseline", indicating that Bitcoin has not experienced a bubble at present. A market bubble forms when the growth rate of Bitcoin's market value exceeds its realized capitalization. When Bitcoin reached its historical high of $73,679, this indicator showed there was a bubble with a score around 1.5. He also pointed out that Bitcoin's 30-day moving average (DMA) MVRV Z-Score is 1.8, slightly higher than Bitcoin's annual average level of 1.6, indicating "the lowest degree of overvaluation".