Bitcoin MVRV Hits Critical Threshold For Profit Taking – What Does This Mean?

Q: How long will it take to read this news story?

The story "Bitcoin MVRV Hits Critical Threshold For Profit Taking – What Does This Mean?" has 421 words across 67 sentences, which will take approximately 2 - 4 minutes for the average person to read.

Q: Which news outlet covered this story?

The story "Bitcoin MVRV Hits Critical Threshold For Profit Taking – What Does This Mean?" was covered 11 hours ago by NewsBTC, a news publisher based in United Kingdom.

Q: How trustworthy is 'NewsBTC' news outlet?

NewsBTC is a fully independent (privately-owned) news outlet established in 2013 that covers mostly crypto news. The outlet is headquartered in United Kingdom and publishes an average of 9 news stories per day. It's most recent story was published 9 hours ago.

Q: What do people currently think of this news story?

The sentiment for this story is currently Negative, indicating that people regard this as "bad news".

Q: How do I report this news for inaccuracy?

You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.<ul><li>News ID: #23623307</li><li>URL: https://beamstart.com/news/bitcoin-mvrv-hits-critical-threshold-1731816134480</li></ul>

NewsBTC Logo NewsBTC 11h ago

Bitcoin MVRV Hits Critical Threshold For Profit Taking – What Does This Mean? - NewsBTC

Quick Summary:

This sentiment is further backed by the asset’s relative strength index (RSI), which remains in the overbought zone. However, Ama Taha further explains that Bitcoin may sometimes only form a major market top when the MVRV ratio reaches as high as 4.Therefore, at 2.64, the premier cryptocurrency may still sustain its current upward price trajectory, if bullish market momentum persists.

However, historical data from late 2021 and early 2022, shows that profit-taking occurs as the Bitcoin MVRV ratio moves into a range of 2.5-3.5, and is accompanied by significant corrections. Following the Bitcoin price surge over the past few weeks, an MVRV ratio of 2.64 presents substantial potential for a major price correction, despite the minor price drops in the past few days.

The analyst advises that investors monitor the MVRV ratio as a rise towards 3 would signal the potential for further price gains while a decline to a range of 1.5-2 indicates a local market top is forming.