The Bitcoin market experienced a modest recovery last week after a 15.7% correction in the latter half of December 2024. Amidst this recent price surge, the development of short-term holders (STH) activity has revealed important signs for Bitcoin in the near future. the day
With more room to run on Bitcoin STH MVRV 1.1
According to A Latest X postBlockchain analytics firm glassnode shared a data report on the MVRV ratio of Bitcoin short-term holders in relation to the market price.
In crypto, the market value to leverage ratio (MVRV) is a critical analysis tool used to determine whether an asset is overvalued or undervalued. It is also used to track the profitability of holders with values above 1 and below 1 meaning loss.
Based on Glassnode’s report, Bitcoin STH MVRV ratio is currently 1.1 which suggests that Short term holders That means investors who have acquired Bitcoin within the last 155 days are experiencing, on average, a 10% gain. Given the decline in the price of BTC in recent weeks, selling pressure may increase as these holders move to realize their gains, leading to short-term price resistance.
However, data from Glassnode shows that the Bitcoin MVRV STH ratio previously peaked at 1.35 in November 2024 and 1.44 in March 2024. These MVRV values suggest that short-term holders can tolerate higher profit levels before triggering a broader selloff.
If Bitcoin bulls maintain the current price recovery with increased demand, the STH MVRV ratio could rise closer to these historic peak levels, which could signal confirmation of a resumption of Bitcoin market growth.
BTC Should Avoid Falling Below $87,000 – Here’s Why
Regarding the Bitcoin STH MVRV ratio, it is understood that 1.0, which indicates no profit or loss, is a key value that acts as a support during bullish trends or resistance in a market downtrend.
The Glassnode report states that the current STH MVRV ratio indicates that 1.0 corresponds to the $87,000 price zone. According to cumulative bid-ask delta data, there is an air pocket between $87,000 and $71,000 meaning there is less trading activity or less significant buy orders in this price range. So, if BTC price slips below $87,000, it won’t hit any significant support until $71,000 translating into a big price drop.
At the time of writing, the premier cryptocurrency continues to trade at $98,081 representing a 1.02% gain over the previous day. With a market cap of $1.94 trillion, Bitcoin continues to rank as the largest asset in the crypto market.
