Editor's PiCK
"Bitcoin enters short-term peak zone based on on-chain indicators…Potential for investors to realize profits"
Summary
- Glassnode stated that as Bitcoin's price surpasses the average purchase price of most investors, the increased supply from profit taking has led the market into a temporary pause phase.
- Glassnode explained that, based on the MVRV metric, Bitcoin is currently trading between +0.5 and +1 standard deviation, a range often associated with short-term price corrections in the past.
- They also added that the +1 standard deviation MVRV band has not yet been crossed, so there may still be potential for further market gains.
As the price of Bitcoin (BTC) significantly exceeds the average purchase price of most investors, an analysis suggests that the market has entered a phase in which profit-taking has increased and price movement is experiencing a temporary pause.
On the 30th (local time), on-chain data analytics firm Glassnode announced via X (formerly Twitter) that "Bitcoin has entered a price range where, statistically, it has often stayed before reaching previous 'local peaks.'"
Glassnode explained, "Currently, Bitcoin is trading in the range of +0.5 standard deviation ($102,000) to +1 standard deviation ($119,400) based on the MVRV metric," and added, "This range has frequently been observed before short-term price corrections in the past."
They further stated, "The MVRV ratio is an indicator that shows how much Bitcoin’s Market Price exceeds the average purchase price (Realized Price)," and "This value helps determine whether investors are holding excessive unrealized profits."
Glassnode additionally noted, "Although Bitcoin is approaching an overheated territory, it has not yet surpassed the +1 standard deviation MVRV band, where large-scale profit realization typically begins. Until this line is breached, there may still be room for further market gains."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
