Bitcoin ($BTC) has again entered a consolidation period, as the key market indicators suggest. The latest data from Glassnode points out that the investors are potentially recalibrating instead of capitulating, as mirrored by the Market Value to Realized Value ratio. The popular blockchain and crypto data intelligence company took to social media to share exclusive insights into Bitcoin’s current support level, as presented by the MVRV level.
Bitcoin MVRV Ratio Shows Support and Growing Investor Confidence at 1.74
Glassnode’s data reveals that Bitcoin’s Market Value to Realized Value (MVRV) ratio has again touched the 1.74 level as its long-term mean. The respective retracement is just like the publlback witnessed back in August last year. This analogously operated as a notable reset following an aggressive price action.
Percent Supply Reaches 88%, Indicating Market Stability
Based on the historical market statistics, the MVRV mean serves as a dependable technical and psychological support level. Glassnode’s analysis discloses the new price bounce as a key metric signifying investor confidence. It also underscores the speculative bubble may have vanished from the market. Hence, it clears the way for a relatively sustained accumulation phase. Moreover, the current price level of Bitcoin signals a resilience at the moment. Along with that, the Profit Oscillator’s Percent Supply is another factor that fortifies the market stability. At 88%.
Specifically, Percent Supply is still in the profit zone. The respective metric plunged to the long-term ratio of 75% ahead of a sheer rebound, reflective the MVRV behavior. Interestingly, the losses are mostly limited to those who participated in the market when $BTC entered the $95K-$100K range. This implies that most of the Bitcoin holders are still enjoying a favorable position. The rebound, devoid of mass capitulation, indicates a wide investor rest while reinforcing the consolidation phase instead of a panic-selling period.
Realized Profit/Loss Ratio Also Presents Bullish Outlook
According to Glassnode, the Realized Profit/Loss Ratio of Bitcoin has also made a bullish swing, returning above 1.0. Thus, this movement reinforces that the average coin expenditure is generating notable realized profits. Overall, this points toward the enhancing enhanced sentiment as well as robust demand absorption, even during profit-taking phase.
However, unless the depiction of a decisive shift by the CRSI and MACD indicators, Bitcoin may stay locked within a tight consolidation range of $90K-$110K. Keeping this in view, the investors are encouraged to observe $93K for support and the $96K-$100K range for noteworthy price resistance.
