Bitcoin Short-Term Holder Selloff Expected at MVRV Ratios of 1.25 and 1.35
Analyst Axel Adler Jr has highlighted potential selling pressure for Bitcoin from short-term holders (STHs) based on the Market Value to Realized Value (MVRV) Ratio.
Key Points
- The MVRV Ratio indicates profitability among investors. A ratio above 1 signals net unrealized profits, while below 1 indicates losses.
- STHs are defined as Bitcoin investors who acquired their holdings within the last 155 days and often react to market changes.
- The current STH MVRV Ratio is 1.09, indicating modest gains, suggesting a mass sell-off may not occur yet.
- Significant selling pressure could arise if the MVRV Ratio reaches 1.25 (around $118,000) or 1.35 (around $128,000).
- Bitcoin is currently trading at approximately $103,200, reflecting a 2% increase over the past week.
The upcoming price movements will determine whether Bitcoin can reach these key levels and if STHs will sell off, potentially acting as resistance.
