As Bitcoin's MVRV ratio pulls back to its long-term average of 1.74, this situation is seen as a key reorganization level historically marking consolidation periods.
The cryptocurrency data analysis platform Glassnode shared striking data regarding Bitcoin's market status. According to the platform's analysis, Bitcoin's Market Value / Realized Value (MVRV) ratio has pulled back to its long-term average of 1.74. This level is historically considered an important reorganization level associated with consolidation periods. This situation is interpreted as a sign of cooling in unrealized gains, similar to the resolution in August 2024, and if this level is maintained, it could serve as support.
Most investors are still in profit
According to Glassnode data, 88% of Bitcoin supply is still in profit. Losses are mostly concentrated among investors who bought in the range of $95,000 to $100,000. This metric also shows an upward recovery from its long-term average, indicating a broad reorganization in investor expectations without widespread capitulation.
Analysts view the BTC Realized Profit/Loss Ratio rising above the 1.0 level again as an important indicator pointing to an increase in profit-taking tendencies. This recovery reflects an improvement in market sentiment and indicates that the demand is strong enough to absorb profit realization, laying the groundwork for recovery.
In light of this data, cryptocurrency experts indicate that Bitcoin's price may consolidate below the $95,000 level in the short term, but the fundamental indicators remain strong in the medium and long term. Particularly, the high level of profit realization in the market may increase the likelihood of new buyers entering, which could contribute to price stability.
The data shared by Glassnode is considered critical indicators for Bitcoin investors to understand market psychology and adjust their positions accordingly. Experts believe that the return of the MVRV ratio to its historical average indicates that the market has exited the overbought region and is preparing for a healthier rally.
