MVRV Ratio Flattening The MVRV ratio flattening indicates the lack of short-time gains and the possibility of a drastic price action.
BTC price tightens Near 107K: The cautious attitude of price investors in the market is solemnized as demonstrated by the tight move of the price...
Declining Value Alerts: A decrease in volume is not just a bullish signal, as we had seen a 12.25% decrease in 24-hour trading volume despite increases in value.
Bitcoin is again getting the attention of investors as it is close to approaching the mark of about the 108,000, and this could change its dynamics in the market. As on-chain metrics such as the MVRV Ratio stop trending downwards following recent turbulence, analysts believe the asset is on the verge of making its next major move.
Although price action has been consistent, the trading volume has slowed down, which is an indication that the market is not certain about the direction it should take. With technicals squeezed and sentiment being readjusted, everyone is eagerly awaiting a breakout by BTC, or their breakout.
On-Chain Metrics Point to a Tense Pause Before the Next Surge
Ali said that recent on-chain indicators show that there may be a major change of sentiment in the market of Bitcoin. The chart shows the MVRV (Market Value to Realized Value) ratio of BTC placed with 30-day moving average and the price of BTC. Specifically, the MVRV Ratio has become flat-ish after experiencing a sharp downward period, which indicates that MVRV has now entered a stabilization period after a volatile activity experienced in the past. Such flattening usually shows the market is rewinding; investors are now on hold and waiting to see what happens until they move.
Source: X
The BTC price seems like it is in a consolidating phase that surfaces just above the 107K mark, with the MVRV ratio and its moving average being in the same area, within a short range of 98.3K. This match-up normally indicates low profitability associated with brief holders, and sometimes it may be accompanied by either a breakout or a breakdown.
Ali has highlighted his area in the magnified area, implying that he is on guard of a likely directional movement. The market seems to have reached a technical junction point, with sentiment indicators and the price movement possibly congesting to form a critical point of triggering the next round of volatility.
Price Steadies Near Highs While Traders Pull Back on Volume
Bitcoin also rose on June 29 and turned above 108,500 but then declined again, coming back at 107,891.98, which was a slight rise of 0.58% daily. The cryptocurrency has a market cap of 2.14 trillion, according to CoinMarketCap figures, as its majority circulating supply of 19.88 million BTC gives it a boost.
Source: CoinMarketCap
But even with an increase in price, 24-hour trading volume fell by 12.25% to 31.58 billion, which is characterized by the restrained attitude of traders. The 1.47% volume-to-market-cap is considered a relatively low indicator and indicates moderate movement, with Bitcoin continuing to rocket near new all-time highs upon its recent gain in bullish momentum.
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