Bitcoin MVRV retests key level: is there still a chance for the bulls?
BTC STH MVRV retested a key resistance level, and a break of this obstacle could trigger a rally.
However, the recent upward momentum has weakened on the price chart at $65K resistance.
The #chain data indicates that #bitcoin [BTC] is retesting a key resistance level, the breakout of which could trigger a major rally.
According to analyst Checkmate, the MVRV (market value to realized value) ratio of short-term holders is retesting the 155-day moving average (MA).
Sn Historically, analysts say, a move above the MA has triggered "decent rallies.
Sn What's next for BTC?
The MVRV ratio is a valuation indicator that determines whether #BTC is overvalued or undervalued; an MVRV value above 1 indicates that most holders have unrealized gains.
And vice versa, a value below 1 indicates that short-term investors are holding the stock at a loss on average. This always happens during price consolidation, which indicates that BTC is undervalued.
In addition to BTC valuation, STH MVRV is a support and resistance level when tracking the 155-day MA. At the time of publication, the value of this indicator tended to 1 and was on the #verge of crossing the 155-day MA.
The chart shows that the last time STH MVRH exceeded the 155-day MA was in Q1 2024 and Q4 2023. In both periods, BTC rallied strongly and short-term investors were inclined to take profits.
Now, if this trend repeats, BTC is likely to break out. If the bulls rise above resistance, BTC could reach $66K or $70K, Shah emphasizes.
If the bulls get their way and reach a weekly high of ~$653K, we can expect ATH to be called.
the network analysts add:
"Short-term holders, statistically speaking, may start a massive sell-off to take profits between $66.1K and $70.8K, so I would keep an eye on them, so I would keep an eye on their behavior.
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