Bitcoin Faces Resistance Below $120,000 While MVRV Ratio Indicates Potential Upside

Bitcoin (BTC) is currently facing resistance just below the $120,000 mark, trading in a range above $118,000. This represents a decline of nearly 4% from its recent all-time high.

Analysts indicate that Bitcoin may be consolidating rather than signaling an imminent downturn. Insights from CryptoQuant show that long-term valuation metrics and investor activity patterns could influence BTC's next significant price movement.

Bitcoin MVRV Ratio Signals Potential Upside Momentum

The Market Value to Realized Value (MVRV) ratio is at 2.2, approaching its 365-day moving average. Key points include:

MVRV readings below 1 often signal market bottoms.
Readings above 3.7 typically indicate market peaks.
A convergence toward the long-term average historically leads to price rebounds.

CoinCare expects Bitcoin to continue consolidating before pushing upward again if buying activity strengthens.

New Investor Activity Indicates Healthy Late Bull Cycle

Another analysis reveals new investor dominance at 30%, which is significantly lower than previous overheated market levels. Notable points include:

Fresh liquidity entering the market supports bullish sentiment.
Long-term holders are selling moderately, indicating stability.
New buyer activity suggests there is still room for growth before euphoric market conditions are reached.

Overall, ongoing activity from new participants since July 2024 contributes positively to the market outlook.