Prominent crypto expert Benjamin Cowen asserts that a key on-chain signal implies Bitcoin (BTC) will trade inside a narrow range for most of this year.
Cowen examines the MVRV Z-score indicator, which compares an asset’s realized value to its market value, in a new strategy session.
In an effort to detect long-term trend reversals, the MVRV Z-score isolates extremes in the data between market value and realized value.
According to Cowen, based on the historical movements of the on-chain indicator, Bitcoin may potentially consolidate in a range until at least 2024 before a strong bull market rise.
Cowen believes that after a year of recovery, both the MVRV Z-score and the price of Bitcoin might explode in the year leading up to the halving, an event in which miners’ BTC payouts are slashed in half.
“As we reach 2024 and the second halving, we hope to witness a prolonged rally in which the MVRV Z-score rises to even higher levels. The MVRV Z-score also indicates that this year is likely to be a recovery year, particularly when seen in the context of the recent weak markets.
Also Read: Blur has surpassed OpenSea in terms of Ethereum NFT trading
