Despite hovering around the $30,000 mark for a long time, Bitcoin fell deep toward $18,000 in June.
Bitcoin has traded beyond the $20,000 barrier in the recent week, but it is yet to reach the $22,000 milestone.
Furthermore, several essential barriers must be overcome before Bitcoin enters a positive cycle.
Bitcoin is underestimated at the present market value when the Market Value To Realized Value (MVRV) measure is used.
According to an analyst on CryptoQuant, Bitcoin is undervalued because the MVRV ratio has fallen beyond a certain threshold since the Covid crisis.
The MVRV is the ratio of a currency’s Market Valuation to its Realized Cap that assesses if the price is overpriced or not. This on-chain metric may be used to analyze the current market position.
In reality, the ratio gives important information about traders’ purchasing and selling habits.
According to the CryptoQuant analyst, the market is presently in its late bear market phase.
Bitcoin Falls Below 200 WMA For The Third Time
On the other hand, the Bitcoin price is on the verge of falling underneath the 200-week moving average, which is now at $22,300, for perhaps the first time in history.
As per CoinMarketCap, Bitcoin is changing hands at $21,011, flat 1.09% in the previous 24 hours.
Furthermore, Bitcoin has produced a weekly candle underneath the 200-week moving average for the third time this season and is continuing in the same direction.
It is the first time in history that the same pattern has occurred three times.