All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Bitcoin’s 365-day MVRV ratio at +21% signals a “mild danger zone,” increasing the likelihood of near-term profit-taking.
- Yet, that the short-term price volatility is expected, with potential support around $105K–$108K and resistance near $124K–$125K.
According to Santiment, the market sentiment tracker, a yellow flag was raised this week: Bitcoin’s 365-day MVRV ratio is sitting at +21%, meaning the average investor who bought in the past year is now comfortably profitable. Even though it is not flashing red, Santiment calls this a “mild danger zone,” where profit-taking becomes noticeably more likely.
As market indicators suggest, there is a heightened risk of selling pressure. Here in this article, we dive into Santiment’s analysis, exploring the factors driving this warning and what it means for Bitcoin’s near-term outlook.
First and foremost, we identified that the development occurred, as also noted in a post by Ainvest:
Bitcoin appears to be in a ‘mild danger zone’ as investors consider taking profits, according to recent analysis. An overvaluation metric, the Market Value to Realized Value (MVRV) ratio…
Santiment’s report, which was published on Monday, highlights Bitcoin’s Market Value to Realized Value (MVRV) ratio, a key metric that measures whether the asset is overvalued or undervalued.
Furthermore, Looking at the current data, Bitcoin’s 365-day MVRV ratio stands at +21%, indicating that the average investor who purchased BTC over the past year is comfortably in profit. While this figure is not at extreme historical highs, Santiment notes it falls within a “mild danger zone,” where profit-taking becomes more likely.
Implications for Bitcoin’s Market Price
According to market reports, the “mild danger zone” flagged by Santiment points to a near-term risk of price consolidation or a modest correction, driven by profit-taking from retail investors sitting on significant gains.
To the best of our knowledge, as shared in a previous Crypto News Flash (CNF) report, Bitcoin investors sit on $1.2 trillion in unrealized gains. However, aggressive accumulation by Bitcoin whales and the potential for a short squeeze suggest that bullish momentum could be resumed by if macroeconomic conditions stabilize or if retail selling pressure exhausts itself.
Not to mentioned that a sustained push above $124,128 could ignite FOMO-driven buying, potentially targeting $130,000–$135,000, as projected by some analysts.
At the time of writing, BTC is trading at $115,060.26, reflecting a decrease of 0.27% in the past day and 3.34% in the past week, according to CoinMarketCap data. See the BTC price chart below.
As with sell walls on major exchanges like Binance adding pressure around $111,500–$118,000. A break below $108,000 could trigger a broader sell-off, with key support levels at $105,000 and $100,000. See the BTC price chart below.
