Bitcoin is trading in the range of US$105,238, caught in a tug-of-war between bullish optimism and the risk of profit-taking as Q2 comes to an end. June is also a crucial month for price direction.
The MVRV band indicates that BTC is nearing an overvalued level, but has not triggered massive profit-taking yet. There is still a little room for upward momentum to continue.
Key level that must be monitored: if BTC breaks through the resistance of US$106,265, the price could be pushed higher. However, if it falls below US$105,000, BTC risks plunging to US$102,734 and experiencing a deeper correction.
Bitcoin Has Not Entered the 'Mass Profit-Taking' Phase
MVRV Deviation Pricing Bands show that Bitcoin is approaching a hot level (overheat), but has not yet exceeded the +1σ band. Historically, this threshold often triggers intense profit-taking actions. Investors usually rush to lock in profits. For now, the market still has room for BTC to rise further. This means that mass sell-offs are not expected in the near future.
As long as Bitcoin has not broken through the important MVRV limit, bullish momentum is likely to persist. This can encourage investors to continue accumulating.