Crypto assets have remained bearish amidst persistent pressure from the traditional market. And as the market leader, Bitcoin (BTC) has continued to test many price bottoms despite its struggles.
However, a new analysis report indicates that BTC’s long-term prospects appear positive.
MDIA and NLPL Support Bitcoin Rise
Earlier this week, crypto analyst Mtkachuk shared an insight online where he explained that Bitcoin had shown some improved technical metrics that could support a long-term price surge. As the analyst explained, the past few months have been difficult for Bitcoin; the crypto bellwether has been unable to provide respite amid the current market downturn. Nevertheless, its long-term prospects remain positive.
The first metric that Mtkachuk pointed out was Bitcoin’s mean dollar invested age (MDIA). According to an explainer from Santiment Academy, the MDIA represents the average age of all tokens on a blockchain weighted by the purchase price. It demonstrates the average age of all Bitcoin investments, and a rising MDIA is usually an indicator of an impending bull run.
Mtkachuk relies on this metric, explaining that Bitcoin’s MDIA is currently at an all-time high. The analyst also points to the asset’s Market Value by Realised Value (MVRV) ratio, which considers Bitcoin’s market cap in relation to its realized cap. The MVRV ratio helps to indicate whether an asset is undervalued or not. The analyst points out that Bitcoin’s MVRV over the past 18 months has loosely resembled its 2017-2019 period, signaling that the market could be maturing and gearing up for another bullish run.
Another major metric that Mtkachuk pointed to is Bitcoin’s Network-realised-profit-loss (NRPL). When cryptos are spent on-chain, their values are assessed relative to the value at the last time they were moved. The NRPL calculates the net profit or loss (measured in USD) for all coins spent over a considered time frame. It reflects aggregate market sentiment, trends, and capital flows. Positive values show that gains are realized on-chain, while negative values mean the opposite.
The analyst points out that Bitcoin’s NRPL shows that investors have experienced similar losses to the asset’s 2019 levels, especially when the metric is measured in BTC. However, when measured in USD, the value is significantly higher – since Bitcoin’s price has pumped by almost ten times since 2019.
With these, Mtkachuk believes that Bitcoin could soon be in for a significant rise. While the analyst claims that history doesn’t always repeat, he believes these metrics indicate fundamental strength in the leading cryptocurrency.
IMPT – Huge Value for a Promising Coin
As Mtkachuk pointed out, Bitcoin and major altcoins haven’t delivered so many gains in the past few months. However, several small-cap coins present profitability opportunities. Investors can check out IMPT – the native token for the Impact Project.
Built on Ethereum, the Impact Project allows companies and individuals to buy carbon credits and offset their carbon footprint. The platform looks to introduce blockchain technology to the fight against climate change, and its IMPT token powers all of its transactions.
IMPT launched its presale earlier this month and has already raised $5 million. This level of investor demand gives the token a basis for a 50x rise soon.
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