Bitcoin MVRV Ratio Signals Price Hot, But Not In Danger Zone Yet
Summary
Bitcoin's Market Value to Realized Value (MVRV) Ratio is currently elevated but remains below the +1 standard deviation (SD) line, which is at $119,400. The MVRV Ratio indicates that when above 1, investors are in profit, while below 1 suggests losses. Bitcoin has recently surpassed the +0.5 SD line, currently around $100,200, indicating significant gains. Historical data shows that breaching the +1 SD line typically leads to price peaks, as increased profits prompt selling pressure among holders. The current rally is still below this critical level but indicates a heated market with potential for further growth before reaching extreme profit levels. Bitcoin's price has recently pulled back to $105,900.
