bullish

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In particular, the 30-day average returns of <a href="https://u.today/bitcoin-cash-proponent-roger-ver-moves-to-dismiss-indictment">Bitcoin's</a> MVRV (Market Value to Realized Value) ratio have dropped to a more wholesome +4/2%. This metric has historically been a crucial indicator of market movements. An overbought market and a possible correction are <a href="https://x.com/santimentfeed/status/1864061347614400617">frequently</a> indicated when the ratio rises above +5%.
A decline below -5%, on the other hand, is a clear indication of undervaluation and frequently results in a bounce. At this moment, <a href="https://u.today/whale-moves-257-million-worth-of-bitcoin">Bitcoin</a> is just above the correction territory threshold, indicating caution. Small losses have been incurred by retail traders, who entered the market at late-November highs, which may help to stabilize the market cap.
<img src="https://u.today/sites/default/files/inline-images/image_1504.png" data-entity-uuid="dabc2349-a25a-4445-a77c-5fd6786d715c" data-entity-type="file" alt="BTCUSDT" data-caption="<a href=&quot;https://www.tradingview.com/&quot;>BTC/USDT Chart by TradingView</a>">
This cooling-off period might reduce the fervor of speculation and enable <a href="https://u.today/xrp-takes-over-bitcoin-ethereum-and-coinbase-with-2-billion-volume-surge">Bitcoin</a> to trade in a range that is more sustainable. Bitcoin's price chart shows some resilience, but it also suggests that it may consolidate in the foreseeable future. The $98,000 and $100,000 key resistance levels are where previous upward momentum encountered hesitancy.
The mark of $91,000 shows up as a critical zone on the support side, supported by prior accumulation and robust volume profiles. Below this, the 50-day moving average, or $81,500, serves as a safety net. The market's next move depends on whether Bitcoin can overcome the resistance level of $98,000 or drop below $91,000.
Before any notable upward surge, the MVRV ratio and these technical levels point to a period of sideways movement or slight pullbacks. A deeper correction could ensue in the absence of strong buying support, but a breach of $100,000 would likely spark fresh bullish momentum.
A cooling-off phase is indicated by Bitcoin's MVRV ratio, which gives the market a chance to adjust. To predict the next trend, traders should keep a close eye out for movements around $91,000 and $98,000. As the market processes recent gains, short-term caution is necessary even though the long-term outlook is still positive. <a href="https://u.today/is-bitcoin-btc-going-to-drop-worrying-mvrv-signal">Read original article on U.Today</a>

Is Bitcoin (BTC) Going to Drop? Worrying MVRV Signal

U_Today

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