Bitcoin prices continue to show resilience near all-time highs. New data suggests there may be room for further growth.
Current Bitcoin Market State
Bitcoin has recovered after a recent dip caused by the U.S. inflation report, trading around $118,600, only 3.6% below its record high of $123,000 set on July 14. However, market activity has slowed, with daily trading volume down over 22%, indicating cooling momentum.
Data on Short-Term Holders
According to CryptoQuant analyst, short-term holders have not reached the profit levels that typically trigger mass sell-offs. The Market Value to Realized Value (MVRV) ratio stands at 1.15, below the threshold of 1.35, allowing Bitcoin to potentially rise another 20-25% before hitting a tipping point.
Technical Analysis and Trends
Technical analysis indicates that Bitcoin is consolidating just below the upper Bollinger Band around $122,151. The relative strength index at 69 suggests strong, but not overheated momentum. The 10-day exponential moving average at $116,464 has supported recent declines.
In conclusion, Bitcoin seems poised for further growth, yet given the current market activity, investors are adopting a more cautious approach. Trading strategies may change depending on whether price levels of support are maintained.
