NewsletterBitcoin MVRV Turns Negative First Time Since March 2023, End of Bull Run Soon?
Highlights
- Analyst On-chain College highlight that while the current period shows weakness.
- Some analysts predict a possible consolidation or quick rebound, but a prolonged year-long downtrend is considered unlikely at this stage.
- Bitcoin investors are concerned about potential sell-offs from Mt. Gox creditors.
The world’s largest cryptocurrency Bitcoin (BTC) crashed all the way to $54,500 earlier before recovering partially. Some of the on-chain metrics like Bitcoin MVRV (market-value-to-realized-value) hint at some caution going ahead. As of press time, the Bitcoin price is trading at $55,770 with a market cap of just under $1.1 trillion.
Bitcoin MVRV Ration Turns Negative
For the first time since March 2023, Bitcoin’s MVRV momentum has turned negative as reported by the on-chain college. This could be signaling a caution indicating that bears might be into the game.
Bitcoin bulls are closely watching this metric while hoping that it regains a 1-year moving average thereby signaling a continuation to higher prices from here onwards. Historically, sustained periods of staying below these levels could be an indication of the coming bear market. If the Bitcoin MVRV recovers above the moving average, the bulls will be in control again.
On-chain college noted that while the current period shows weakness, opinions differ on implications. It can either present a fantastic buying opportunity or indicate a further decline, noted the analyst. Analysts remain divided in predicting a possible consolidation or drop below this level, while others are seeking a quick rebound.
On-chain College notes that a prolonged year-long downtrend signaling a bear-market condition seems to be unlikely at this stage.
Also Read: Bitcoin Price Fails To Break 200D EMA, Is $52k Next?
Mt. Gox and German Government Selling
One of the biggest concerns currently hovering over Bitcoin investors is the possible sell-off coming from Mt. Gox creditors who received their Bitcoins last week after almost a decade. The defunct crypto exchange would be distributing nearly 140,000 Bitcoins over the next few months. The recent movements by Mt. Gox wallets have sent jitters across the crypto market.
Investor sentiment has been dampened further by reports of the German government selling confiscated Bitcoin. The selling by the German government continues further as they moved an additional 1,000 bitcoins earlier today.
Meanwhile, global markets remain cautious as investors analyze the outcomes of recent elections in France.
Also Read: German Lawmaker Ditches Digital Euro, Advocates Bitcoin As Anti-CBDC Solution
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- U.S. CFTC Scraps Outdated Crypto Market Rules, Clearing Path for Modern Oversight
- Breaking: JPMorgan Issues Short-Term Bond on Solana as Institutions Move Markets On-Chain
- Breaking: 21Shares XRP ETF Launches as XRP Funds Extend Inflows Streak
- Are DATs Being Targeted? Strategy CEO Questions MSCI’s Proposed Exclusion From Global Indices
- Crypto Bill Talks Stall as Senate Democrats Push Back on Stablecoin Yield Provisions
- Ethereum price prediction following $57.6M ETF Inflows – What’s Coming?
- Here’s Why Solana Price Could Explode to $150 Soon
- XRP Price Hits Crucial Support as ETF Inflows and Top RLUSD Metrics Soar
- Dogecoin Price Set to Rebound to $0.20 After Symmetrical Triangle Breakout
- Cardano Price Dips 10% as Midnight Token Launch Turns Sour
- Bitcoin Price Holds $90k as Markets React to Fed Rate Cut: Will BTC Rally to $100k or Fall to $80k?
