Bitcoin's market cycle mirrors past surges. With an MVRV ratio of 2.1, NVT at 759, and Stock-to-Flow of 426, indicators point to a possible upcoming rally. Will history repeat itself in the fourth quarter?
Bitcoin has reignited discussions about its market cycle, with investors closely monitoring on-chain signals and derivatives for insights. The MVRV Ratio approached 2.1, a zone that has historically preceded parabolic rallies, signaling a pre-euphoria phase.
BTC’s MVRV ratio at 2.1 indicates a pre-euphoria zone, previously followed by parabolic rallies and renewed market conviction. This signal points toward increased upside potential in the medium term.
Beyond the MVRV ratio, the NVT ratio at 759, the Stock-to-Flow peak at 426, and positive funding rates collectively support Bitcoin’s next potential rally. These indicators converge to paint a highly bullish picture.
The Network Value to Transactions (NVT) ratio has surged to 759, indicating that Bitcoin’s market value has outpaced its transaction volume. Historically, such increases have indicated investor confidence in holding BTC, with price appreciation outstripping network activity.
Similarly, Bitcoin’s Stock-to-Flow Ratio, which compares circulating supply to new coin issuance, has significantly increased to 426, indicating tightening supply dynamics. Spikes in this metric typically precede major bullish movements, reinforcing Bitcoin’s investment appeal as scarcity intensifies.
Binance funding rates have primarily remained positive, confirming traders’ inclination toward leveraged longs. Sustained positive rates indicate that market participants are willing to pay premiums to hold leveraged longs, highlighting strong speculative demand.
Bitcoin’s NVT, Stock-to-Flow, and funding rate trends converge to paint a bullish picture. With expanding valuation, tightening supply, and intact leverage demand, the evidence favors continued upside. If history repeats itself, these indicators could lay the groundwork for Bitcoin’s next major rally.
With speculative demand intact and indicators remaining bullish, Bitcoin may be preparing for its next major rally. Here’s how to easily purchase it on Bitget:
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