Bitcoin price is currently up 1.1% daily but remains down 3.77% weekly, with key resistance at $117,000. Easing selling pressure from long-term holders and a bullish MVRV ratio suggest a potential rally if BTC clears this level.
-
Bitcoin price rose 1.1% today but is still down 3.77% for the week, creating uncertainty about the rally’s sustainability.
-
Long-term holders have reduced selling pressure, supported by narrowing spent output bands and stable price absorption above $113,000.
-
MVRV ratio at 2.19 aligns with historical rally triggers, while trader sentiment shifts to a long bias, highlighting $117,000 as critical resistance.
Bitcoin price analysis reveals easing selling pressure and bullish valuation signals. Watch $117,000 resistance for breakout potential. Stay informed with COINOTAG.
How Is Selling Pressure from Long-Term Bitcoin Holders Changing?
Long-term Bitcoin holders have significantly eased their selling pressure, signaling a potential end to the recent correction phase. Between July 23 and August 1, the 7–10 year spent output bands showed less widening compared to earlier July, indicating fewer coins moved by dormant wallets. Bitcoin price remained above $113,000 during this period, demonstrating strong market absorption of supply.
Spent Output Bands measure coin movement by age, with wider bands indicating higher selling activity. The current thinning of these bands suggests that large holders are holding steady, which historically precedes price stabilization or rallies.
Bitcoin price and Spent Output Bands: Cryptoquant
What Does the MVRV Ratio Indicate About Bitcoin’s Valuation?
The MVRV (Market Value to Realized Value) ratio currently stands at 2.19, a level that has historically marked undervaluation and preceded strong rallies. Past instances include June 2025 (2.16) and April 2025 (2.12), where Bitcoin prices surged significantly within days.
MVRV compares current market price to the average cost basis of holders. A ratio near 2 suggests a balanced valuation with room for growth, unlike overheated markets where MVRV exceeds higher thresholds. This metric, combined with reduced selling from long-term holders, forms a bullish setup.
Bitcoin price and MVRV ratio: Cryptoquant
Trader positioning supports this outlook, as the long/short ratio flipped from 0.89 to 1.02 recently, indicating increased bullish sentiment among market participants.
Bitcoin long-short ratio: Coinglass
Why Is the $117,000 Level Critical for Bitcoin’s Next Move?
The $117,000 price point is the key breakout level Bitcoin must clear to confirm a new rally. Currently, BTC trades just above the 0.382 Fibonacci retracement at $113,600, with support zones at $111,900 and $110,000. Falling below these supports risks invalidating the bullish setup.
The $117,000 level shows the highest candle volume, marking it as a significant resistance zone. A successful breakout above this price could trigger renewed buying momentum, while failure may lead to continued sideways or downward pressure.
Bitcoin price analysis: TradingView
| Metric | Current Value | Historical Comparison |
|---|---|---|
| MVRV Ratio | 2.19 | Similar to June & April 2025 rally triggers |
| Long/Short Ratio | 1.02 | Shifted from 0.89 two days ago |
| Key Resistance | $117,000 | Highest candle volume zone |
Frequently Asked Questions
What factors are influencing Bitcoin’s current price movement?
Bitcoin’s price is influenced by easing selling pressure from long-term holders, a bullish MVRV ratio indicating undervaluation, and a shift in trader sentiment toward long positions, all centered around the critical $117,000 resistance.
How can traders identify if Bitcoin will rally or stall?
Traders watch key support and resistance levels, especially $117,000. Clearing this resistance with strong volume signals a rally, while failure to break it may result in price consolidation or decline.
Key Takeaways
- Easing Selling Pressure: Long-term holders are reducing coin movements, signaling less supply pressure.
- Valuation Sweet Spot: MVRV ratio at 2.19 historically precedes Bitcoin rallies.
- Critical Resistance: Bitcoin must surpass $117,000 to confirm a bullish breakout and avoid stalling.
Conclusion
Bitcoin’s current market dynamics suggest a poised setup for a potential rally, with long-term holders easing selling pressure and valuation metrics signaling undervaluation. The $117,000 resistance level remains the pivotal point for traders to watch. Staying informed on these indicators is key to anticipating Bitcoin’s next move.
