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.
Courtesy: Glassnode/On-chain College
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
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.