(Shanghai, May 21, 2024) As the digital asset market is about to reach a key node for quarterly contract settlements, Willy Woo, chief researcher at on-chain analytics firm IntoTheBlock, released a significant signal through social media: The current Bitcoin market is at a historic breakthrough point, and once it effectively stabilizes above the key resistance level of $73,000, a new round of accelerated upward momentum may break through market perception boundaries, targeting the psychological level of $118,000.
According to on-chain data, the current Bitcoin MVRV ratio has risen to 1.28, reaching a new high since the beginning of the 2021 bull market. This core indicator reflecting market valuation has broken through the threshold, often signaling that main funds are accelerating their entry. Woo particularly pointed out in his analysis: "The current market structure presents a textbook-level bullish pattern, with the coin hoarding by long-term holders (HODLers) resonating with the on-chain transfer activity, this 'ice and fire' market characteristic is a perfect replica of the market before the 2019 bull market started."
It is worth noting that the Bitcoin funding rate on BitMEX, the world's largest futures exchange, has maintained a positive value for 12 consecutive days, setting the second-longest record in history. This reflects a strong consensus among professional traders regarding the future market. A head of an Asian hedge fund revealed to this publication: "The institutional order book shows that there are over 200,000 buy orders buried in the $75,000-$80,000 range to support the market, this defensive layout is comparable to the market pattern before the DeFi Summer in 2020."
Historical data supports this prediction: After Bitcoin first broke through $1,000 in 2013, it created a 1200% increase myth in just 8 months; before reaching the historical peak of $20,000 in 2017, it also experienced a three-month consolidation period. Currently, after an 18-month cycle of adjustment, its market cap share has quietly rebounded to 62%, with an increase of 137% from last year's low. These quantitative accumulations are brewing a qualitative breakthrough.
However, market analysts also remind investors to remain rational. Lennix Chen, chief strategist at OKX Research Institute, pointed out: "Although the technical analysis shows strong bullish signals, we must be wary of fluctuations that may arise from changes in regulatory policies and the approval process of spot ETFs. A true bull market symphony requires not only the surging momentum of funds but also the continuous sublimation of market consensus."
In this digital asset feast that stirs the nerves of global capital, every investor is waiting for that critical point that will break the balance. When the invisible shackles of historical peaks are truly shattered, it may be, as Woo said: "What we are about to witness is not only a leap in price numbers but also a historic moment of value reassessment in the entire crypto financial system."
