Bitcoin BTC’s MVRV (Market Value – Realized Value) ratio, a metric that helps assess the temperature of the market, currently stands at 150%. Accordingly, this shows that we are not in an overheated region. This metric provides valuable information about potential price movements. Past bull markets have typically peaked at MVRV rates exceeding 300%.
MVRV ratio pointed out this fact for Bitcoin
The MVRV ratio is an important indicator of Bitcoin’s health. Accordingly, it represents the difference between the current market price and the realized price (the price at which the coins were last traded). A ratio below 100 may indicate a good entry point. On the other hand, a ratio significantly above 100% could indicate an overheated market. The current MVRV rate of 150 leaves ample room for growth.
Based on on-chain data, several key price levels for Bitcoin emerge that are worth noting. The recent high of $35,000 is a very important resistance point. Additionally, approximately 664,000 investors purchased 340,000 BTC at this level. If Bitcoin manages to overcome this hurdle, the next point of concentrated trading activity will be in the $38,000 to $39,000 range, where 333,000 BTC changed hands.
If there is a correction
Conversely, in the event of a correction, buying activity appears to be concentrated just above the $30,000 mark, with approximately 553,000 BTC traded at that level. This data helps identify potential support levels where investors can step in during price declines.
This on-chain information provides valuable guidance for both long-term investors and traders. On the other hand, it helps them make informed decisions based on their past purchasing activities. The MVRV ratio shows that there is still room for growth in the current Bitcoin market. On the other hand, it is necessary to stay up to date with the data on the on-chain. It is also very important to monitor key price levels for potential future movements of BTC.
On-chain data is becoming popular
By being informed and using this on-chain information, investors can determine entry points. On the other hand, they also determine resistance levels. They can also predict support areas during Bitcoin price corrections. However, it is necessary to look at other metrics in the volatile cryptocurrency market. As Bitcoin continues to evolve, taking data into account can be a valuable strategy for both crypto enthusiasts and traders.
To be informed about the latest developments, follow us Twitter’in,Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.