Bitcoin Is Still on The Rise: 3 Major Indicators Suggest

Bitcoin (BTC) increased by over 150% this year, performing better than assets like the S&P 500, gold, and the U.S. dollar. New investors may think Bitcoin is too expensive, but they might be focusing too much on recent price drops.

Investors used to traditional finance might think Bitcoin price is too high at the moment and choose to wait for a Bitcoin price drop since they believe it's rare that assets will double in value within a year. They often fear losses, selling winning investments too soon and keeping losing ones for too long.

Despite these concerns being valid, these investors may miss out on Bitcoin entry as three indicators monitoring Bitcoin’s activities – Bitcoin blockchain activity, miner flows, and the 200-day moving average – suggest Bitcoin still has room to grow.

The Puell Multiple looks at daily Bitcoin earnings compared to the yearly average. High numbers mean miners might sell, lowering prices. Low numbers suggest the opposite. Currently, the Puell Multiple is 1.53, far from a worrying high. This is a bullish sign.

The MVRV Z-score compares Bitcoin's market value to its 'real' value. A score of 1.6 suggests Bitcoin isn't overvalued. Historically, scores above eight show overvaluation, while negative scores indicate undervaluation. Another bullish indicator

The Mayer Multiple compares Bitcoin's price to its 200-day average. A current score of 1.404 means Bitcoin's price is not too high compared to its long-term trend. This suggests that Bitcoin is not overbought and could rise further.

Note That This Article Does Not Stand as Financial Advice, DYOR Before Investing

Bitcoin is currently trading at $42,800