Bitcoin's MVRV Ratio Approaches Historical Bottoms
- MVRV Ratio Decline: Bitcoin's market value to realized value (MVRV) ratio has dropped to 1.1, nearing historical cycle bottoms, indicating the current price is undervalued, which may prompt investors to consider accumulation at this level.
- Historical Trend Correlation: Historical data shows that MVRV readings near or below 1 have coincided with macro cycle lows, such as the March 2020 crash and the 2018 bear market bottom, where patient buyers often reaped significant rebound rewards.
- Regulatory Pressure Impact: With banks attempting to derail a major US crypto bill just before a Senate vote, fresh uncertainty has been injected into the market, and this regulatory friction could suppress sentiment and contribute to the visible discount in the MVRV ratio.
- Liquidity Risk Considerations: Although the current MVRV ratio signals undervaluation, the shift in Bitcoin supply distribution towards less price-sensitive holders suggests that a ratio of 1.1 may not carry the same statistical significance as in previous cycles, necessitating close monitoring of future market movements.
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Technical Analysis for BTC
Technical Sentiment Analysis for Bitcoin (BTC). As of , Bitcoin (BTC) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 1 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for BTC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, BTC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Bitcoin (BTC) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 50332.489 | 54731.7 | 58717.579 | 63116.79 | 67102.669 | 71501.88 | 75487.759 |
| Fibonacci | 54731.7 | 57934.804 | 59913.685 | 63116.79 | 66319.894 | 68298.775 | 71501.88 |
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