google.com, pub-7870541769880094, DIRECT, f08c47fec0942fa0

Short Term Bitcoin Holders See 10% Profit – Potential Price Impact?


The Bitcoin market experienced a moderate recovery last week following a 15.7% correction in the last quarter of December 2024. Amidst this recent price gain, the development from the activity of short-term holders (STH) revealed key indicators for Bitcoin in the future. days.

Table of Contents

Bitcoin STH MVRV At 1.1 With More Room To Work

According to X’s latest post, blockchain analytics company Glassnode shared a data report on the MVRV value of short-term Bitcoin holders in relation to the market price.

In crypto, the market value to real value ratio (MVRV) is an important analytical tool used to measure whether an asset is overvalued or undervalued. It is also used to track owner profitability with values ​​greater than 1 indicating a profit and less than 1 indicating a loss.

Based on the Glassnode report, the Bitcoin STH MVRV ratio currently stands at 1.1 suggesting that short-term holders i.e. investors who acquired Bitcoin in the past 155 days, on average, are making a 10% return. Considering the decline in the price of BTC in recent weeks, there may be increased selling pressure as these holders try to get their profits, leading to short-term price resistance.

However, data from Glassnode shows that the average Bitcoin MVRV STH reached peaks of 1.35 in November 2024, and 1.44 in March 2024. These MVRV values ​​suggest that short-term holders may tolerate higher levels of profit before triggering a sell-off. which is broad.

If Bitcoin bulls maintain the current price recovery and increasing demand, the STH MVRV ratio may rise closer to these historical highs, which may indicate confirmation that Bitcoin is resuming its rise in the market.

BTC Must Avoid Falling 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 an important value that acts as support during bullish trends or resistance to market decline.

Glassnode’s report reveals that the current STH MVRV ratio shows that 1.0 corresponds to a price point of $87,000. According to data from Cumulative Bid-Ask Delta, there is an air pocket between $87,000 and $71,000 meaning there is little trading activity or few significant buy orders in this price range. Therefore, if the price of BTC slips below $87,000, it will not hit the important support until $71,000 which translates into a significant reduction in price.

At the time of writing, the first cryptocurrency continues to trade at $98,081 indicating a gain of 1.02% over the previous day. With a market cap of $1.94 trillion, Bitcoin continues to be ranked as the largest asset in the crypto market.

Bitcoin



Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top