Short-Term Bitcoin Holders See 10% Profit – Potential Impact On Price?
The Bitcoin market has experienced a modest recovery over the past week following a 15.7% correction in the second half of December 2024. The development of short-term holder (STH) activity during the recent price rally revealed important signs of Bitcoin’s future direction. sky.
Bitcoin STH MVRV at 1.1, with more room to run
according to a Recent X postsblockchain analytics company glass node Shared a data report on the MVRV ratio of short-term Bitcoin holders relative to the market price.
In cryptocurrencies, the market value to realized value ratio (MVRV) is a key analytical tool used to measure whether an asset is overvalued or undervalued. It is also used to track the profitability of the holder, with values above 1 indicating profits and values below 1 indicating losses.
According to a report by Glassnode, the Bitcoin STH MVRV ratio is currently at 1.1, indicating short term holders That is, investors who bought Bitcoin in the past 155 days made an average profit of 10%. Given the decline in Bitcoin prices in recent weeks, selling pressure is likely to increase as these holders begin to realize gains, leading to short-term price resistance.
However, data from Glassnode shows that the Bitcoin MVRV STH ratio previously peaked at 1.35 in November 2024 and reached 1.44 in March 2024. These MVRV values suggest that short-term holders may tolerate higher profitability levels before triggering a broad-based sell-off.
If Bitcoin bulls maintain the current price recovery amid rising demand, the STH MVRV ratio could rise to near all-time peak levels, which could mark confirmation that Bitcoin has resumed its market uptrend.
BTC must avoid falling below $87,000 — here’s why
Regarding the Bitcoin STH MVRV ratio, it is understood that 1.0 indicates no profit or loss and is a key value that acts as support in a bullish trend and as resistance in a market downtrend.
Glassnode reports that the current STH MVRV ratio shows 1.0 corresponding to the $87,000 price area. According to data on cumulative buy and sell delta, there is an air pocket between $87,000 and $71,000, meaning there is lower trading activity or fewer significant buy orders in this price range. Therefore, if the price of BTC falls below $87,000, there will be no significant support until $71,000, resulting in a significant price drop.
As of writing, the top cryptocurrency continues to trade at $98,081, up 1.02% over the past day. With a market capitalization of $1.94 trillion, Bitcoin continues to be the largest asset in the cryptocurrency market.
