During this cycle, the unrealized profits of Short-Term Holders (STH) have never surpassed the 42% threshold as shown by their MVRV.
Every time the STH MVRV has reached around 1.35, corresponding to +35% unrealized profits, it has triggered profit-taking behavior, often followed by a short-term correction.
As of now, we’re still far from that point as the current STH MVRV is sitting around 1.15.
This is largely due to the fact that the realized price for STHs crossed above $100 000 on July 11 for the first time in Bitcoin’s history. It’s now even above $102 000.
As a result, there is still room for BTC to rise by approximately 20% to 25% before hitting that critical MVRV threshold again.
In other words, there may still be a bullish window before the next round of widespread profit-taking begins.
Just a reminder, the MVRV ratio helps assess the amount of unrealized profits by comparing Bitcoin's market cap to its realized price. In this case, the values are specific to STH.
Written by Darkfost
