87% of Bitcoin supply is in profit: What it means for BTC’s next move
How has Bitcoin's price movement been described in recent weeks?
In recent weeks, Bitcoin's price movement has been described as consolidating within a horizontal channel, with the coin facing resistance at $71,656 and finding support at $64,825. Despite this sideways price movement, investor profitability remains robust, with over 87% of the circulating supply held in profit and an average unrealized profit of over 120%. However, the volume of coins being processed and transferred on the Bitcoin Network has significantly declined since March's all-time high, indicating reduced appetite for speculation and heightened indecision in the market.
What resistance and support levels has Bitcoin recently encountered?
Bitcoin has recently encountered resistance at $71,656 and found support at $64,825. Despite the coin's narrow price movements, investor profitability remains robust, with over 87% of the circulating supply held in profit. The Market Value to Realized Value (MVRV) ratio shows that the average BTC coin in circulation holds an unrealized profit of over 120%.
What is the significance of Bitcoin's Market Value to Realized Value ratio?
The Market Value to Realized Value (MVRV) ratio is a crucial metric in understanding Bitcoin's market dynamics and investor behavior. It is calculated by dividing the market capitalization by the realized capitalization. Market capitalization is the current market price of Bitcoin multiplied by the number of coins in circulation, while realized capitalization considers the aggregate value of all coins based on the price at which they were last transacted12. The MVRV ratio helps determine if the price is fair, aids in identifying market tops and bottoms, and provides insights into market sentiment and investor behavior.