With the Bitcoin (BTC) halving happening in less than four hours, in that location is strong testify that investors are continuing to accrue Bitcoin.

Readers will recall that on March 12, a day now referred to as Black Thursday, the price of the summit-ranked crypto asset on CoinMarketCap crashed more 50%, registering its second biggest daily drop in history.

While this was an incredibly painful 48 hours for over-leveraged traders, the resulting bargain-bin prices on Bitcoin and other cryptocurrencies presented a potential once-in-a-lifetime opportunity for long-term investors.

Bitcoin's impressive rise from $3,750 to $9,450 aside, just how much of an opportunity these by few weeks have been is also clear to run across in a number of on-chain and marketplace cycle sources.

On-chain data provides unique insight into the behaviour of market participants by analyzing transactions that take place on the blockchain. From the size of transactions and wallets to more complex tools, blockchains offer a wealth of data.

The information drawn from blockchains tin help investors and researchers understand what has happened to toll in the past, and information technology can also offer guidance on what to look in the future.

Bitcoin cost briefly dropped below its cost footing

Bitcoin MVRV Z-Score. Source: lookintobitcoin.com

The MVRV Z-score is an on-chain indicator that uses blockchain analysis to identify periods where Bitcoin is extremely over- or undervalued relative to its "fair value." The "MV" part of the name stands for "marketplace value," which is essentially the market place capitalization of Bitcoin, or the number of coins in circulation multiplied by price.

The "RV" role stands for "realized value," which uses the price of coins when they were final sent from one wallet to another rather than the current price. So, nosotros can think of realized value as the average cost basis investors paid for their Bitcoin.

In the calendar week post-obit Blackness Thursday, market value (the bluish line on the chart higher up) was lower than realized value (the orange line). This moment is highlighted by the arrow on the chart. This is a rare occurrence in Bitcoin's history due to the digital currency's aggressive price growth over time, and whenever this occurs information technology signals an incredible buying opportunity for long-term investors.

In addition to this, the indicator too uses a standard deviation line called the Z-score (the crimson line on the chart) that pulls apart differences in the MVRV data. The Z-score tin telephone call market bottoms (the green zone) and tops (the cherry-red zone) very effectively.

It has called the previous market bike tops to within ii weeks! Later on a brief dip into the green "buy" zone, the Z-score has now excited and has been rising rapidly since, resulting in the contempo price spike upwardly across $10,000.

Whales buy the dip following a elementary indicator

The 200-calendar week moving average has been a consistently resolute support for Bitcoin over fourth dimension. Equally shown below, when the toll retraces back to this moving average it has historically been a corking "buy-the-dip" opportunity.

BTC–USD one-week chart. Source: TradingView

Whales are known to seize on the opportunity and commencement buying whenever cost hits this key level. CryptoCobain, a Bitcoin OG and whale, was not shy about his buying at these levels during the recent marketplace crash. The Bitcoin whale humorously tweeted:

I call upon the old gods. I call upon the new gods. I summon you. In the words of the elders, pump it

In addition to just using the standard 200 (WMA) line, it is possible to create a heatmap from its movement over time, given its office as a key back up for Bitcoin cost.

The 200-WMA heatmap nautical chart shows that while Bitcoin cost has bounced hard from this of import moving average over the past few weeks, at that place is still a long way to get before the market becomes overheated.

200-Calendar week Moving Average Heatmap. Source: lookintobitcoin.com

The orange and cherry dots on the Bitcoin toll line represent high monthly changes of between +12 and +sixteen% to the 200WMA. Historically these colours have highlighted the months where Bitcoin'south price is becoming overextended and where the market begins to top out.

Currently, the cost remains firmly in the night blue, and so one could interpret this equally meaning that cost has plenty of room to increase based on Bitcoin's previous marketplace structures.

Long-term investors continue to HODL

On-chain data continues to show that sentiment among mid- to long-term investors remains positive and that they are not prepared to sell their holdings whatsoever time soon.

Despite the major volatility in Bitcoin's price in recent months, the pct of Bitcoin that has non moved on-chain for over a year has remained around threescore%. This indicates at that place are stiff hands amongst Bitcoin investors.

1 Yr+ HODL Wave. Source: lookintobitcoin.com

The nautical chart also shows the cyclical nature of HODL'ing. There is typically a sustained drop in the number of coins held for over a year equally the marketplace approaches the belatedly stages of a Bitcoin balderdash market.

This is shown past the green downward arrows on the chart below. Currently, at that place is no sustained driblet in +1yr HODL'ing, which over again suggests the marketplace is simply starting to enter a new bull marketplace with investors accumulating more Bitcoin.

i Year+ HODL Wave. Source: lookintobitcoin.com

As the wider market becomes more aware of these levels of HODL'ing, this will put further need-side pressure on an already deficient asset.

Recent weeks show rapid changes in investor sentiment

Relative Unrealized Turn a profit/Loss. Source: lookintobitcoin.com

Afterwards briefly dipping into the capitulation level six weeks ago, the marketplace spent the past few weeks in the hope and fright surface area. The most recent pump shows investor sentiment entering the optimism and denial phase.

The Relative Unrealized Profit/Loss metric is able to monitor market sentiment through actual marketplace activity, rather than only claimed behaviour. Information technology is able to achieve this past looking at the ratio betwixt Bitcoin'south market place cap and when investors are taking profit.

In doing so, it has consistently highlighted the fundamental market stages throughout Bitcoin'due south history, including marketplace tops and bottoms.

In fact, looking back at previous cycles we can come across that it is likely to be some fourth dimension earlier investor sentiment reaches the greed level which has historically proven to be an splendid time to have profit for the smart investors.

BTC days in turn a profit continues to rise

While Bitcoin volatility over contempo months has had some traders feeling queasy, zooming out to view the long term shows long-term HODL'ers go along to benefit from the asset's remarkable ascent over fourth dimension.

Bitcoin Profitable Days. Source: lookintobitcoin.com

Reviewing the percentage of days in Bitcoin's history where ownership Bitcoin would take put investors in profit at today's prices, we see it stands at a staggering 95.4%.  For those who can stomach the short term price swings, patience clearly pays.

Every bit the halving draws ever closer and cardinal banks across the globe continue to impress without intermission, any of the significant downside risks associated with Bitcoin are beginning to look increasingly limited.

Thus, the just thing left for investors to wonder well-nigh is: How soon will it exist before the percentage of assisting days for holding Bitcoin reaches 100% as the price breaks out into new all-time highs?

The views and opinions expressed hither are solely those of the author and do not necessarily reverberate the views of Cointelegraph. Every investment and trading motility involves risk. You lot should carry your own research when making a decision.