The Axel Adler JR market analyst shared valuable insights on the Bitcoin market in relation to the latest activities of miniature -term owners. This comment appears because the most essential cryptocurrency has been stuck in the consolidation phase after the Flash accident at the beginning of February.
Bitcoin Sths is gaining on an overheated market – an analyst
IN X Post On February 8, Axel Adler Jr explains that short-term Bitcoin (STH) owners IE Holders of Bitcoin in between 1-3 months are aware of their profits. This development is based on a decline in STH MVRV-WSKAźnik, which measures the market value to the realized value of all Bitcoins owned by short-term owners, thus helping determine their status of profit/losses.
Basically, STH MVRV about 1.30-1.35 suggests an overheated market because short-term owners have high unrealized profits indicating the potential for sale and price drops. According to Adler Jr., STH MVRV recently fell from 1.35 to medium levels, which means that a significant part of STH closed its positions, helping to chilly the market.
Historically, the end of the overheated phase usually translates into the period of price consolidation, provided that market demand remains sturdy. Axel Adler Jr derives reference until January 2024, when a similar decrease in STH MVRV was still sturdy enough to finally initiate the price rally.
However, the cryptographic analyst warns that the decisions of US President Donald Trump largely affect the current market landscape. This was clearly illustrated last week, when the US moved to the imposition of modern tariffs to China, Mexico and Canada attracted retaliation, causing investors to bring funds from risky assets in fear of the trading war.
Axler Adler JR states that with the exception of other negative factors related to Donald Trump’s political activities, Bitcoin may break free from the current consolidation of Fomo driven up. However, in the case of Bitcoin, it seems to create a sturdy support zone of around 90,000 USD, which can prevent deeper amendments.
BTC price review
At the time of writing, Bitcoin trades at USD 96,998 after a profit of 0.98% in the last 24 hours. Meanwhile, its trading volume is $ 22.53 billion, because on the last day it crashed by 59.04%. In the case of market bulls, appropriate resistance levels are USD 102,000 and USD 106,000. Lack of interruption over the initial resistance will force Bitcoin to stay in consolidation in the foreseeable future.
Recommended photo from Istock, chart from TradingView
