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Technical Crypto Indicators 10th May 2024 $60.5k Key level for BTC + MVRV Z-Score + NUPL

Crypto Technical indicators Bitcoin Eth

Bitcoin (BTC) Detailed Metrics Analysis:

MVRV Z-Score:

  • Explanation: This metric assesses whether Bitcoin is overvalued or undervalued relative to its "fair value" by comparing market value to realized value.

  • Q1 2024 Data: Throughout the quarter, Bitcoin's MVRV Z-Score rose from a lower threshold, moving from a cautious undervaluation towards a balanced valuation, reflecting the price increase from $44,000 to more than $70,000. It did not reach extremes, which suggests a cautious but stable market sentiment. The Z-Score has been generally between the undervalued and overvalued extremes, hinting at a balanced investor sentiment with potential room for growth.

Realized Price:

  • Current Level: The realized price of Bitcoin was approximately $28,000 at the close of Q1 2024.

  • Market Implications: With Bitcoin trading at about 156% above its realized price, it indicates a robust profit margin for most holders, which historically leads to heightened selling activity as investors seek to capitalize on gains.

Puell Multiple:

  • Current Reading: Reflects miner revenue derived from newly issued bitcoins versus the historical norm. As of Q1, this multiple indicated that mining revenue was 80% higher than the last year's average due to a run-up in price.

  • Implications: High Puell Multiple values generally correspond to high profitability for miners, increasing the likelihood of selling from this cohort, especially in anticipation of the halving event.

Net Unrealized Profit/Loss (NUPL): The NUPL was in the "Belief–Denial" zone at the close of Q1, signaling optimism but caution against potential reversals if profit-taking begins.

Ethereum (ETH) Detailed Metrics Analysis

MVRV Z-Score:

  • Explanation: Similar to Bitcoin, this ratio for Ethereum helps identify periods where the cryptocurrency is overvalued or undervalued relative to its realized capitalization.

  • Q1 2024 Data: Ethereum's MVRV Z-Score began the quarter at a low of 0.70 and rose to a peak of 2.34, which is almost three times the historical average of 0.88. This significant rise reflects the robust price increase Ethereum experienced, moving from around $1,300 to approximately $2,015.

  • Market Implications: Despite the substantial price increase, the Z-Score suggests that Ethereum might still be in an undervalued range, especially compared to historical peaks, which could imply there is room for further price appreciation before reaching an overvalued state.

Realized Price:

  • Current Level: The realized price for Ethereum was $1,892 at the end of Q1 2024.

  • Market Implications: Trading at 93% above its realized price, Ethereum exhibits strong market support and bullish sentiment, suggesting that investors anticipate further gains and are less inclined to sell at current price levels.

Net Unrealized Profit/Loss (NUPL):

  • Current State: Moved into the "Belief" zone by the end of Q1 2024.

  • Implications: This progression indicates that the market sentiment is optimistic but not yet at a peak greed level, providing potential headroom for price growth before significant profit-taking is likely to occur.   

Bitcoin ($BTC) bulls have regained momentum, pushing the price back into the range with highs around $71.5k and lows at $60.5k. The higher time frame (HTF) shows strength as it maintains above the Weekly Moving Average (WMA) 20. The advantage leans towards the bulls. Keep a close eye on the $60.5k level; losing this could be crucial. The price is currently retesting the $60.5k zone, indicating an ongoing battle.

Ethereum ($ETH) remains stable above the WMA 20, though it has yet to break out against Bitcoin.

Support and resistance levels based on the daily chart to monitor:

  • Bitcoin ($BTC): Support around $60.5k and resistance at $71.5k.

  • Ethereum ($ETH): Support near $2650 and resistance around $3500.

  • Bitcoin Cash ($BCH): Support at $350.

  • Injective Protocol ($INJ): Support at $18.

  • Maker ($MKR): Support at $2150.

  • TRON ($TRX): Support at $11.10.

  • Render Token ($RNDR): Support at $6.40.

  • Fetch ($FET): Support at $1.85.

  • Solana ($SOL): Support at $117.

  • Binance Coin ($BNB): Support at $510.

  • Chainlink ($LINK): Support at $13.

  • Immutable X ($IMX): Support at $1.80.

  • Avalanche ($AVAX): Support at $29.

  • THORChain ($RUNE): Support at $4.40.

  • Stacks ($STX): Support at $2.00.

  • NEAR Protocol ($NEAR): Support at $4.30.

Crypto Trading Signal BOME ETH LQTY

Disclaimer: The content provided in this article and website is for educational purposes only and is not intended as financial advice. Cryptocurrency investments are highly volatile and risky. There is a potential for significant loss, up to and including the total loss of your investment. Readers are advised to conduct their own research and consider consulting with an independent financial advisor before engaging in any financial transactions based on this information. Neither the author nor this platform assumes liability for financial losses that could occur as a result of using this information


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