Bitcoin MVRV Ratio Is At A Critical Retest: Can Bulls Triumph?
25 Settembre 2024 - 2:30AM
NEWSBTC
On-chain data shows the Bitcoin Market Value to Realized Value
(MVRV) Ratio of the short-term holders is currently making a retest
that could prove significant for BTC’s price. Bitcoin STH MVRV
Ratio Is Retesting Its 155-Day MA Right Now As explained by
on-chain analyst Checkmate in a new post on X, the short-term
holder MVRV Ratio breaking above its 155-day moving average (MA)
could lead to bullish action for Bitcoin. Related Reading: Is
Altcoin Season Coming? These Two Signals Could Suggest So The MVRV
Ratio is a popular indicator that, in short, keeps track of how the
value held by the BTC investors as a whole (that is, the market
cap) compares against the value that they initially put in (the
realized cap). When the value of this metric is greater than 1, it
means the average address on the network can be assumed to be
holding a net profit right now. On the other hand, it being under
the threshold suggests the dominance of loss in the market. In the
context of the current topic, the MVRV Ratio of only a specific
segment of the sector is of interest: the short-term holders
(STHs). The STHs include the investors who bought their coins
within the past 155 days. Thus, the MVRV Ratio for this cohort
tells us about the profit/loss status of the buyers from the last
five months. Now, here is a chart that shows the trend in the
Bitcoin STH MVRV Ratio over the last few years: As displayed in the
above graph, the Bitcoin STH MVRV Ratio has surged recently as the
latest recovery rally in the cryptocurrency’s price has taken
place. With this increase, the indicator has edged just above the 1
mark, implying profitability has returned for the cohort. More
importantly, though, the metric is now trying to find a break above
its 155-day MA. As Checkmate has highlighted in the chart, BTC has
generally tended to enjoy some bullish momentum whenever the STH
MVRV Ratio has crossed above this line. The last time that this
type of crossover had occurred in the indicator was back in the
first quarter of this year and what had followed it was the coin’s
rally to a new all-time high (ATH). Given the precedence, it’s
possible that BTC may once again see a bullish wave, should the STH
MVRV Ratio manage to break beyond its 155-day MA. “If the bulls get
their way, and we set a weekly higher high ~$65.3k, I’d reasonably
expect an attempt to the ATH,” notes the analyst. Related Reading:
Bitcoin Could Reach $108,000 To $155,000 By 2024 End, Analyst
Reveals Why Checkmate also warns, however, that profit-taking from
these investors could be to watch out for once the price reaches
the $66,100 to $70,800 range. This is because, these investors, who
don’t tend to have a strong resolve, would get into notable profits
at those levels. BTC Price Bitcoin has seen a jump of around 8%
over the past week, which has taken its price to the $63,700 level.
Featured image from Dall-E, checkonchain.com, chart from
TradingView.com
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