According to Foresight News, analysis by Glassnode reveals that Bitcoin's (BTC) current Market Value to Realized Value (MVRV) ratio stands at 2.4. This places it between the +0.5σ ($100,200) and +1σ ($119,400) bands, suggesting the market is nearing an overheated state but still has room for growth.
Analysts highlight that while this range typically signals the formation of a local top, Bitcoin has yet to breach the critical +1σ MVRV range, a level historically associated with significant profit-taking. They note that continuous inflows from ETFs and accumulation by institutional investors are supporting Bitcoin's price. Despite the emergence of retail FOMO (fear of missing out), large-scale profit-taking has not yet occurred.
Experts advise closely monitoring the +1σ MVRV range, as this level has traditionally triggered investor behavior characterized by the sentiment of "too good to sell."
