The Bitcoin market has seen a modest rebound over the past week following a 15.7% correction in the last half of December 2024. Amid this latest price increase, developments from short-term holder (STH) activity have revealed important indicators for Bitcoin’s future. days.
Bitcoin STH MVRV at 1.1 with more room to run
According to A X’s last postblockchain analytics firm Glassnode shared a data report on the MVRV ratio of short-term Bitcoin holders in relation to the market price.
In cryptocurrencies, the Market Value to Realized Value (MVRV) ratio is a crucial analysis tool used to measure whether an asset is overvalued or undervalued. It is also used to track shareholder profitability where values greater than 1 indicate profit and less than 1 indicate loss.
Based on a Glassnode report, the Bitcoin STH MVRV ratio is currently 1.1, which indicates that short-term Bitcoin holders, i.e. investors who have held Bitcoin within the past 155 days, are making an average of 10% profit. Given the decline in Bitcoin prices in recent weeks, there may be increased selling pressure as these holders move to realize their gains, leading to short-term price resistance.
However, data from Glassnode indicates that the Bitcoin MVRV STH ratio previously peaked at 1.35 in November 2024, and 1.44 in March 2024. These MVRV values suggest that short-term holders may tolerate higher profitability levels before triggering a sell-off. Extensive.
If Bitcoin bulls maintain the current price recovery with rising demand, the STH MVRV ratio could rise near historical peak levels, which could signal confirmation of Bitcoin resuming its uptrend in the market.
BTC Should Avoid Dropping Below $87,000 – Here’s Why
Regarding the Bitcoin STH MVRV ratio, it is understood that 1.0, which indicates no profit or loss, is a pivot value that acts as support during uptrends or resistance in a downtrend of the market.
Glassnode report reveals that the current STH MVRV ratio shows 1.0 corresponding to the $87,000 price zone. According to data from the cumulative supply and demand delta, there is an air pocket between $87,000 and $71,000, i.e. there is low trading activity or fewer significant buy orders in this price range. Therefore, if BTC price drops below $87,000, it will not reach major support until $71,000, which would mean a significant price drop.
At the time of writing, the flagship cryptocurrency continues to trade at $98,081, reflecting a 1.02% gain in the past day. With a market capitalization of $1.94 trillion, Bitcoin continues to rank as the largest asset in the cryptocurrency market.
Comments are closed, but trackbacks and pingbacks are open.