Bitcoin tests $110K resistance, retreats after hitting daily high briefly.
MVRV Z-score shows strength but not extreme overbought signals yet.
Short-term holders in profit may trigger sell-off near resistance.
Bitcoin’s price has climbed back above $105,000 after a recent sharp drop, but the key $110,000 level remains a critical resistance zone.
The market is showing mixed signals, with underlying on-chain metrics suggesting strength, while a high number of short-term holders in profit poses a risk.
On-Chain Metrics Show Both Strength and Risk
According to an analyst, market indicators show mixed signals. The MVRV Z-score, which helps measure if Bitcoin is overvalued or undervalued, currently stands at +0.6. This suggests buying strength in the market without signs of overheating.
Meanwhile, 83% of short-term Bitcoin holders are still in profit. “The market remains in a bullish trend with moderate overbought levels and strong interest from short-term holders,” the analyst wrote. But he warned that with so many short-term holders in profit, there’s a higher risk of a price dip around $110K if people begin selling.
Bitcoin Is…
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