In a recent report, CryptoQuant researcher Axel Adler focused on two key indicators: Bubble vs. Crush market structure and MVRV Z-score as signals that Bitcoin's current price trend is moving in a healthy direction.
Adler added: "We can see that the current bull cycle is developing quite steadily, without obvious anomalies or large jumps."
He emphasized that the first indicator has dropped to 1.02 points, which he believes is "the baseline", indicating that Bitcoin is not currently experiencing a bubble.
When Bitcoin's market value "grows faster" than its realized capitalization, the market forms a bubble. When Bitcoin reached its all-time high of $73,679, the indicator showed a bubble with a score of about 1.5.
It also pointed out that Bitcoin's 30-day moving average (DMA) MVRV Z-Score is 1.8, slightly higher than Bitcoin's annual average of 1.6, indicating "the lowest degree of overvaluation." (Cointelegraph)