Summary
- An expert emphasized that Bitcoin's MVRV indicator moves closely with the 365-day moving average, and currently, there is a need to prepare for downside risks.
- Recently, the MVRV indicator surpassed SMA365, leading Bitcoin to reach an all-time high, but the 2.93 resistance line could block further increases.
- Currently, Bitcoin is trading at $108,541, down 0.94% from 24 hours ago.
Considering the Market Value to Realized Value (MVRV) indicator of Bitcoin (BTC), there is a claim that investors should prepare for downside risks.
On the 28th (local time), CryptoQuant contributor Burakkesmeci stated in a report, "The Bitcoin MVRV indicator has a close relationship with the 365-day moving average (SMA365)," and "Considering the current MVRV indicator, investors should prepare for downside risks."
He said, "Historically, when the MVRV surpasses the SMA365 and stays above it, Bitcoin experiences a strong rise," and "Recently, as the MVRV surpassed the SMA365, Bitcoin reached an all-time high (ATH)."
However, he predicted that major resistance lines could hinder price increases. He diagnosed, "Currently, the MVRV is at 2.36, exceeding the SMA365 of 2.14, but the resistance line of 2.93, which has been maintained for years, is a major concern," and "This point could be a decisive factor blocking further rises in the future."
As of 6:36 PM, Bitcoin is trading at $108,541 on the Binance USDT market, down 0.94% from 24 hours ago.
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
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