Bitcoin’s MVRV Momentum Slows, Impacting Price Breakout Potential
- Bitcoin’s market value realized value (MVRV) ratio is currently at a slope of 2.22, below the overvalued zone of above 3.7.
- The seven-day moving average for Bitcoin’s onchain transfer volume has decreased by approximately 32% to $52 billion from a peak of $76 billion in late May.
- Current spot trading volume for Bitcoin is around $7.7 billion, lower than previous cyclical peaks in this bull market.
The slowdown in Bitcoin’s MVRV momentum suggests the cryptocurrency might be entering the late stage of its bull cycle, according to analysts. Despite recent price rebounds, onchain and spot trading volumes have cooled down significantly, indicating reduced investor engagement compared to past rallies.
For Bitcoin to break out past its current peak of $112,000 and potentially reach new highs, an increase in both onchain activity and spot trading volume is essential. Analysts highlight that flipping the resistance between $108,000 and $110,000 into support is crucial for upward momentum. Source
