Bitcoin's (BTC) pullback from its record loftier of $67,000 to below $60,000 has non deterred bulls from eyeing another peak level ahead, per an indicator that attempts to predict market bottoms and tops.

Dubbed MVRV, the take a chance metric represents the ratio of Bitcoin'south market value to its realized value — similar to the price to book (P/B) ratio that compares a company's market place value to its book value. In doing then, MVRV attempts to identify whether an nugget is under or overvalued.

A 2022-like bullish setup

An MVRV reading above iii.seven alerts about Bitcoin topping out, prompting selloffs. On the other hand, an MVRV reading beneath 1 implies buying pressure on the prospects of Bitcoin bottoming out.

MVRV has historically assisted Bitcoin traders in spotting selling and buying pressures in the Bitcoin market. For example, the orange overlays in the chart below represent the correlation between the Bitcoin cost and its MVRV output.

Bitcoin price verses MVRV. Source: CryptoQuant

Lennard Neo, head of research, explained in a new Stack Funds report published on Nov. 4 that the current MVRV rebound is similar to the 1 spotted during the 2022 bull run, forming a sequence of higher highs and higher lows (green) as the Bitcoin cost rises.

Additionally, MVRV also rebounded similarly afterwards the May 2022 price crash, slipping below 1 to signal the Bitcoin market's undervaluation in that flow. The metric recovered well to create college highs and higher lows, confirming the uptrend for Bitcoin.

"With MVRV currently trading at 2.72, far off from its recent peak of 3.96 in February., we are expecting farther room for growth equally it re-test the 4.0 handle," Neo wrote in a study published Nov. 4, adding:

"Should the MVRV uptrend play out in the near future, Bitcoin's peak is probably a while away."

Bitcoin to $70K?

Neo added that Bitcoin's recent ability to concord $60,000 every bit its back up level indicates its strong willingness to retest $67,000 — or fifty-fifty extend the upside move toward $70,000.

The annotator mentioned ii on-chain metrics in addition to MVRV to explicate his bullish outlook. That included metrics that track Bitcoin balances across all the crypto exchanges and wallets that hold a large amount of BTC tokens.

In particular, the full Bitcoin held by exchanges worldwide reached two.311 million BTC, its lowest level in more than than 3 years.

Bitcoin balances across all exchanges reserves. Source: CryptoQuant

Bitcoin's biggest investors likewise accelerated their accumulation spree as the Bitcoin toll recovered from its May–July 2022 crash.

Co-ordinate to Glassnode's Whale Supply Shock indicator, the so-called whales — addresses that hold between 10,000 and 100,000 BTC — increased their Bitcoin buying during the recovery from sub-$30,000 after July.

Bitcoin Whales Supply Shock. Source: Glassnode

Dor Shahar, an on-chain analyst at CryptoJungle, called it a sign of "a multi-calendar month accumulation uptrend," predicting fresh tape highs for Bitcoin as whales take abroad more BTC supply out of circulation.

Related: Bitcoin whale indicator detects multi-month accumulation trend as BTC eyes $67K-retest

"The ratio between the 2 groups, whales and other fishes, gives a measurement of supply dynamics," he said, calculation:

"Thus, [the indicator] tin help visualize the supply shortage coins held past whales can cause and its event on price. Forth with that, a more than sensitive macro superlative indication."

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