Bitcoin Nears Two Important On-Chain Levels: What Happened Last Time

Bitcoin is currently approaching two important on-chain price levels, according to data. The first level is the “MVRV +1SD,” which compares the market cap of Bitcoin to the value put into the cryptocurrency by holders. This metric is used to assess the profitability or loss in the market and judge the fairness of the coin’s price. The other level of interest is the “Vaulted Price,” which reflects the potential energy stored in the system based on coin accumulation and distributive pressure. Bitcoin previously broke through the Vaulted Price and reached the MVRV +1SD, which resulted in the bull run of 2021. Currently, Bitcoin is trading below these levels but remains close to them. The price of Bitcoin recently reached above $72,000 but has since dropped to around $69,000. It is yet to be seen what will happen if Bitcoin breaks above these on-chain levels again, and whether it will lead to another euphoric run in the market.