Bitcoin's price has recently experienced a downtrend, raising questions about its alignment with the 2017 bull cycle. Historical comparisons show a correlation of 92% between the present cycle and the 2015-2017 bull market. However, this correlation has slightly weakened to 91% due to Bitcoin's failure to reach new all-time highs. The MVRV Ratio indicates investor sentiment, suggesting that while a decline reflects a correction, it may also point towards a potential bottoming phase for Bitcoin.
The historical correlation between Bitcoin's current cycle and the 2017 cycle remains surprisingly high; earlier this year, correlation was around 92%, now sitting at 91%.
Despite recent divergence, Bitcoin's current price action still exhibits remarkable similarities to the 2015-2017 cycle, creating questions regarding its alignment with the 2017 bull cycle.
The MVRV Ratio is crucial as it indicates investor behavior; a rise suggests unrealized profits indicating market tops, whereas a decline indicates a potential bottoming phase.
Current price action suggests a significant divergence from the 2017 trend, with Bitcoin moving sideways and declining instead of rallying to new all-time highs as expected.
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