- Bitcoin’s press time MVRV value of 1.27 resembled a 50:50 scenario for the king coin’s next moves.
- Whale investors increased their interaction with exchanges over the week.
Bitcoin’s [BTC] underwhelming performance tested the patience of bulls. With prices trapped in the $25,000-$31,000 range for almost 50 days, there was little cheer for participants who used to profit from the asset’s violent fluctuations.
Read Bitcoin’s [BTC] Price Prediction 2023-24
However, their resilience could soon be rewarded. MVRV Ratio, one of the most popular and potent indicators to identify tops and bottoms in Bitcoin’s price, reached the historically significant level of 1.27, as per IntoTheBlock.
MVRV can help pinpoint potential bottoms. When the value is <1, it signals that most people are at a loss. Historically, this has indicated the best buying opportunities. The current value for BTC is 1.27
— IntoTheBlock (@intotheblock) September 6, 2023
Good days coming for BTC?
An asset’s market capitalization divided by realized capitalization defines the MVRV Ratio. Put simply, it is the ratio of an asset’s current price to the average price at which each token was acquired.
When the ratio is below 1, it means that most holders are in losses and is interpreted as a buy signal. The more the ratio increases, the more people will be willing to sell as the potential profits increase.
As per a CryptoQuant author, 1.2 has acted as a key support level. As indicated below, whenever this level was honored, BTC prices moved northwards, and whenever it was violated, prices moved further to the downside.
The press time value of 1.27 therefore, was more like a 50:50 scenario. While bullish leveraged traders would aim for a big bounce from the level, bearish leveraged traders hoped for the opposite.
Whales get active
While Bitcoin’s short-term movement hinged around the aforementioned support line, whale investors increased their interaction with exchanges.
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According to CryptoQuant, the Exchange Whale Ratio witnessed a sharp spike since the start of the week, reaching a value of 0.49 at the time of writing. Notably, this was the highest value since mid-May.
Market mood turns positive
BTC exchanged hands at $25,723 at the time of writing, per Santiment. Apart from the increased whale activity, the overall market mood for the king coin also turned favorable, as evidenced by the positive values of the weighted sentiment indicator.