Recent data shows that Bitcoin's MVRV ratio has reached an important level of 2.2, potentially indicating future price movements. We discuss the factors influencing the current market situation.
Bitcoin MVRV Ratio and Convergence
The current MVRV ratio for Bitcoin is at 2.2, approaching its 365-day moving average. This metric helps evaluate whether the asset is overvalued or undervalued historically.
Values below 1 indicate low points, while above 3.7 suggest high points. Historically, periods of convergence toward the moving average precede price increases.
Unrealized Profits Reach Record Highs
Bitcoin's unrealized profit as a percentage of market cap has surpassed the +2σ level, correlating with euphoric phases in previous cycles. Recently, unrealized profits hit a total of $1.4 trillion, creating potential selling pressure as long-term investors still control 53% of Bitcoin supply.
Market Prepares for Final Bitcoin Price Move
Analyst Merlijn The Trader warns that the final Bitcoin price movement approaches. The current market phase shows a transition from long-term holders to short-term participants, which historically precedes all-time highs. Bitcoin's price is currently at $118,600, just 3.4% below its record high.
Analyzing the current environment suggests potential upward movements for Bitcoin while emphasizing the importance of monitoring asset distribution among long-term and short-term investors.
