Bitcoin Stalls Below $72,000: Is This The Weakest BTC Bull Run In 15 Years?

Bitcoin prices are firm when writing and trading at around multi-month highs but below the all-important liquidation line at around $72,000. While up roughly 20% from May 2024 lows, some analysts are already questioning the sustainability of the uptrend, especially considering the level of engagement.

Bitcoin Struggling For Momentum: Will Bulls Or Bears Take Over?

One analyst on X points out the state of Bitcoin’s price action and thinks the current uptrend could be one of the weakest in the coin’s history. This preview is especially true when comparing the current performance with those seen in 2021 and 2017 using the Market Value to Realized Value (MVRV) ratio.

In on-chain analysis, the Bitcoin MVRV ratio compares the Bitcoin market cap versus the total realized cap of all BTC in circulation. The MVRV ratio also changes, fluctuating mostly impacted by price action. Looking at the Bitcoin price action over the years, extreme highs in the MVRV ratio have often coincided with market tops. 

When this happens, it suggests that BTC investors buying the coin then could be overpaying. As things currently stand, the analyst said the current MVRV levels are “glaring” compared to previous bull cycles, implying this rally could be tepid.

The analyst highlighted two potential outcomes for Bitcoin prices. In one scenario, the current upward trend could be subdued, signaling the end of the rally.

If this is the case, BTC prices are likely to plummet in the near future, making the surge to $73,800 the weakest bull run in Bitcoin’s 15-year history, based on MVRV data.

However, the current subdued price action and retreat from an all-time high to spot rates could be a precursor for further gains in the coming months.

Nevertheless, for BTC bulls to gain control, traders must show commitment and sentiment change. These two factors will work together to drive prices to new all-time highs above the March 2024 levels.

Case For BTC Bulls: Spot ETFs And FASB Rule Changes

Most analysts believe BTC is trading at a discount at spot rates. Several fundamental factors may support this outlook. For instance, the resurgence in spot Bitcoin exchange-traded fund (ETF) demand may help propel prices like it did in the better half of Q1 2024. 

Furthermore, the anticipated Financial Accounting Standards Board (FASB) rule change by the end of the year could profoundly affect Bitcoin adoption. These changes would allow institutions to include BTC on their balance sheets, which many believe would accelerate the institutional adoption of Bitcoin and drive prices even higher. 

Feature image from Canva, chart from TradingView