Brief-term Bitcoin holders see a 10% profit – potential price impact?

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The Bitcoin market has experienced a moderate recovery over the past week following a 15.7% correction in the second half of December 2024. Amid this recent price surge, the development of short-term holder (STH) activity has revealed significant indications for Bitcoin in the coming days.

Bitcoin STH MVRV at 1.1 with more room to run

According to A X’s last postBlockchain analytics company Glassnode has released a report with data on the MVRV ratio of short-term Bitcoin holders in relation to the market price.

In crypto, market-to-realized value (MVRV) is a critical analytical tool used to assess whether an asset is overvalued or undervalued. It is also used to track holder profitability, with values ​​above 1 indicating a profit and below 1 indicating a loss.

Based on a Glassnode report, the Bitcoin STH MVRV ratio is currently 1.1, which suggests that short-term holders, i.e. investors who have purchased Bitcoin in the last 155 days, are seeing an average gain of 10%. Given the decline in BTC prices in recent weeks, selling pressure may raise as cryptocurrency holders look to realize their profits, leading to near-term price resistance.

However, data from Glassnode indicates that the Bitcoin MVRV STH ratio previously peaked at 1.35 in November 2024 and 1.44 in March 2024. These MVRV values ​​suggest that short-term holders may tolerate higher levels of profitability before triggering a widespread sale.

If Bitcoin bulls maintain the current price recovery amid rising demand, the STH MVRV indicator could rally closer to these historical highs, which could signal confirmation of Bitcoin’s return to the market’s uptrend.

BTC Must Avoid Drops Below $87,000 – Here’s Why

With respect to the Bitcoin STH MVRV ratio, it is assumed that 1.0, which means no profit or loss, is a key value acting as support during uptrends or resistance in the case of a downtrend in the market.

Glassnode’s report shows that STH’s current MVRV shows that 1.0 corresponds to the $87,000 price zone. According to Cumulative Bid-Ask Delta data, there is an air pocket between $87,000 and $71,000, which means there is low trading activity or less significant buy orders in this price range. Therefore, if the BTC price drops below $87,000, it will not reach significant support until $71,000, which will result in a solemn price drop.

At the time of writing, the top cryptocurrency is still trading at $98,081, reflecting an raise of 1.02% over the past day. With a market capitalization of $1.94 trillion, Bitcoin is still the largest asset in the cryptocurrency market.

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