Bitcoin recently hit a resistance point after a notable surge, climbing past the $67,000 mark. Last week, it reached a high of $72,000 on May 21. However, as of now, it has dipped by 5.7% to $67,800.

Bitcoin Investment Inflows

A recent study analyzed the demand for Bitcoin investment products, highlighting significant inflows from the US. The latest price drop interrupted the upward trend, indicating that buyers are not yet prepared to push the price beyond $71,500. Despite this, the long-term outlook remains positive. According to crypto analyst Axel Adler, using the Bitcoin MVRV Z-score metric, we are only midway through the current bull run. For the latest updates in technology news, visit NEWSLINKER.

The MVRV Z-score is a tool to determine if Bitcoin is overvalued or undervalued compared to its fair value. It compares the market value of Bitcoin to the cumulative capital inflow into it. A higher market value compared to capital inflow suggests a potential peak. Historically, an MVRV Z-score of 7 or above has signaled cycle peaks.

Historical Trends in Bitcoin

During the recent surge, the MVRV Z-score reached 3.07, suggesting potential for further price increases in the coming months. On February 28, there was notable activity among Bitcoin holders who had kept their coins for six months or more. The group holding for 3-6 months was particularly active, indicating profit-taking during the rise.

Similarly, Bitcoin holders active over the past two months and those who sold when prices exceeded $70,000 on May 21 were primarily in the 1-3 month holding range. Older holder groups showed less selling activity on exchanges in April and May, likely due to the anticipation of a post-halving price increase, which has yet to fade.

In conclusion, while Bitcoin faces some short-term resistance, the long-term outlook remains bullish according to various metrics and historical trends. The market shows signs of continued interest and activity, suggesting that this bull run might still have a way to go.