Despite Bitcoin's price struggling to reclaim its March all-time high, analysts assert that the bull market remains on a strong and steady trajectory, with no indications of a significant correction on the horizon, based on two critical metrics.

In an August 18 report, CryptoQuant researcher Axel Adler analyzed the Bubble vs. Crush Market Structure and the MVRV Z-score, both of which suggest that Bitcoin's current price action is following a healthy path. Adler said,

"We can see that the current bull cycle is developing quite steadily without significant anomalies or sharp jumps."

Bitcoin’s Market Structure Indicates Stability

Adler pointed out that the Bubble vs. Crush Market Structure score has dropped to 1.02, which he describes as "the baseline," indicating that Bitcoin is not currently experiencing a bubble. Bubbles typically form when Bitcoin’s market capitalization grows faster than its realized capitalization. When Bitcoin reached its all-time high of $73,679, the indicator signaled a bubble, with a score of around 1.5. Shortly thereafter, the price plunged 16% to $61,930, according to CoinMarketCap data.

Currently, Bitcoin is struggling to maintain the key $60,000 level, a point that traders have been closely watching. Since July 22, Bitcoin has been trading within a 40% range, fluctuating between a low of $49,842 and a high of $69,799. As of now, Bitcoin is trading at $59,236.

Minimal Overvaluation According to MVRV Z-Score

Adler also observed that Bitcoin’s 30-day Moving Average (DMA) MVRV Z-Score is at 1.8, slightly above Bitcoin’s annual average of 1.6, suggesting "minimal overvaluation." A surge in this metric can indicate that the asset is overvalued, potentially signaling an impending price correction. For example, in March 2021, the 30DMA MVRV Z-Score climbed above 5 just before Bitcoin peaked at $60,701. By July, the asset had declined by 45% to $32,827.

Both the Bubble vs. Crush Market Structure and the MVRV Z-Score are essential tools for assessing whether Bitcoin might be considered overvalued. Adler concluded with,

"As long as the metric does not reach extreme levels that could signal a significant risk of correction, the market can be considered bullish."

Several traders have weighed in on Bitcoin’s prolonged consolidation. "We are in the boring phase. This phase happens before and after the halving," wrote pseudonymous crypto trader Ash Crypto in an August 20 X post.

Meanwhile, another pseudonymous trader, Rekt Capital, noted that Bitcoin is "on the cusp of reclaiming its Post-Halving ReAccumulation Range," suggesting that Bitcoin could see further gains in the coming months.