Bitcoin may be entering an attractive buy zone according to two popular metrics used by crypto analysts to track on chain transaction activity.
Market value to actual value (MVRV) and open interest (OI) metrics could suggest Bitcoin is at an attractive entry point for traders.
“This is the best time to buy Bitcoin,” the trader nicknamed Mister Crypto told in an X post on April 23.
According to CoinGlass data, Bitcoin's OI-weighted funding rate – which represents the cost of holding Bitcoin Futures Contract positions – returned to positive territory on April 24 after 24 hours in the range negative, reaching 0.0093%, according to CoinGlass data.
Despite the uptrend, it is still significantly lower than the 0.0714% level recorded in early April, a correction that analysts see as beneficial for the market.
“One of the healthiest market resets I have seen in a long time,” online analyst Checkmate declared in an April 24 post .
Higher funding rates signal increased interest in Longing trades, reflecting more bullish sentiment in the market.
The last time Bitcoin's OI-weighted funding rate peaked significantly in early March, Bitcoin hit an All-Time-High of $69,200 on the same day.
Just a week later, on March 14, it surpassed that milestone again, climbing to $73,835, according to CoinMarketCap data.
However, Capriole Investments founder Charles Edwards said that while the funding ratio is a good indicator, it no longer provides the same level of certainty as it did a few years ago.
2018 to 2020 and 2021, that three-year period, it wasn't talked about much. People don't understand it and it's a measure that has a one hundred percent hit rate, where if it turns negative, it's almost one hundred percent guaranteed; If you hold a Longing position, you will make money.
According to Edwards, although “there are a lot of parties involved now, this is a slightly more complicated metric to XEM at.”
Meanwhile, the MVRV indicator – which aims to identify when Bitcoin is overvalued or undervalued relative to its fair value – also shows that Bitcoin has moved further into favorable buying conditions.
At the time of writing, Bitcoin's MVRV score is 2.32, down 6.45% since the beginning of April, according to LookIntoBitcoin data.
An MVRV score above 3.5 indicates the market has almost reached its peak, while a score below 1 indicates the market has Dip.
Edwards pointed out that current MVRV levels suggest “we have quite a bit of time next year.”
However, he explains that current buying opportunities are much less lucrative than those available two years ago.
