Bitcoin MVRV Ratio At Make-Or-Break Test: Will Support Hold?
Summary
The Bitcoin MVRV ratio is retesting its 365-day SMA, a historically significant level. The MVRV ratio compares investor holdings to the realized cap, with a ratio above 1 indicating profits and below 1 indicating losses. The current ratio is around 1.8, similar to the 365-day SMA. Historically, the SMA has acted as support during bullish trends, and a drop below it has signaled a transition to a bearish trend. The current retest may be significant for Bitcoin's future trend. The price of Bitcoin is currently trading around $56,900.
