MVRV Index Forms: Market Has Not Peaked Yet – There Is Still Room for Growth
At the moment, the MVRV ratio is at 2.25, still well below the previous bull run peak, even though Bitcoin has maintained above $104K.
History shows that when MVRV reaches high values, the market often enters extreme tops, but the long-term downtrend of this indicator shows that there is still plenty of room for Bitcoin to continue to increase in price.
This reflects that the current rally is still based on sustainable momentum rather than the excessive speculative behavior often seen during periods of emotional upheaval.
Source: IntoTheBlock/X
Analysis of negative market sentiment while Bitcoin continues to surge past $100K
Despite Bitcoin price surpassing $104K, the Weighted Sentiment index has dropped to -0.723, reflecting widespread skepticism among investors and traders.
Typically, negative sentiment during a bull market indicates that many are still skeptical about the possibility of sustaining the rally.
However, contrary analysis shows that this could be a positive signal, as the market still has growth potential. The crowd's doubts make investors less inclined to take profits early, creating conditions for the price increase to continue.
Source: Santiment
Can NVT and Puell Multiple Reflect Bitcoin's Undervalued Value?
The NVT Golden Cross and Puell Multiple are both down more than 23% and 25%, respectively, suggesting that Bitcoin still has room to recover as the price has yet to fully reflect on-chain factors.
This shows that miners are still operating stably, and the network is not overloaded.
In short, there are no signs of a bubble forming, reflecting value-driven growth, rather than speculative frenzies.
Source: CryptoQuant
Shifting Markets: Are Investors More Long Term Holders?
On-chain metrics show that outflows from exchanges increased by 10.72%, while inflows decreased by 10.27%.
This reflects the high possibility that investors are withdrawing money to hold long term instead of selling short term, helping to reduce early selling pressure.
Furthermore, the massive withdrawal flow also signals the possibility of supply tightening, creating a strong momentum when demand increases, strengthening the confidence of holders in this bullish phase.
Market is quiet for short-term investors in this bull run
On-chain capital flow information shows that short-term investor activity (0d–1d) is only 0.278, an unprecedented low during strong price increases.
Typically, this index rises when new investors take profits during sudden price increases. However, this silence shows that short-term holders are not in a hurry to cash out, maintaining the upward momentum and limiting short-term downward pressure.
As a result, the restraint of short-term investors helps maintain a steady price increase, while long-term holders still play a leading role.
Source: Santiment
Risk of mass liquidation of long positions causing the next big correction?
According to Binance's liquidation map, there is a large group of long positions liquidated below $104K.
If the price falls below this level, a series of sell-offs may occur, increasing the downside volatility.
Conversely, short positions are even more concentrated above this price level, creating the possibility of a short squeeze if price breaks above.
The market is now at a crossroads where leverage factors could shape the next move in the short term.
Source: Coinglass
Conclusion: Bitcoin's Rally Isn't Over, But Short-Term Risks Remain
While Bitcoin’s uptrend past $100K still lacks overbought market signals, on-chain indicators remain neutral or positive.
Negative sentiment, bearish valuation metrics, and a long-term consolidation trend suggest this rally still has potential.
However, high long liquidation levels can pose short-term risks if support is broken.
Overall, the data reflects a cautiously positive sentiment, as fundamentals remain solid, but leverage and market sentiment factors can create short-term volatility.
Source: https://tintucbitcoin.com/mvrv-du-bao-bitcoin-con-tiem-nang-tang/
Thank you for reading this article!
Please Like, Comment and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
