BTC Short-Term Holder MVRV Signals 20-25% Upside Potential Before Next Profit-Taking Phase

CryptoQuant analyst Darkfost recently highlighted that the short-term holder MVRV metric for Bitcoin (BTC) suggests continued growth potential. Historically, the unrealized profit for short-term holders (STH) has not surpassed the 42% mark, as indicated by the MVRV ratio. Typically, when the STH MVRV approaches 1.35, equating to roughly a 35% unrealized profit, it prompts profit-taking, often leading to a brief market correction. Presently, the STH MVRV stands near 1.15, signaling room for further appreciation.

Significantly, the realized price for short-term holders recently breached the $100,000 level on July 11, reaching an all-time high above $102,000. This milestone underpins the argument that BTC could still experience a 20% to 25% price increase before encountering resistance at the critical MVRV threshold. This analysis points to a potential bullish phase ahead, prior to any substantial profit-taking activity.

The MVRV (Market Value to Realized Value) ratio remains a vital tool in evaluating market dynamics for cryptocurrencies like Bitcoin. By comparing market capitalization to realized capitalization, it provides insight into investorsโ€™ unrealized gains or losses, helping to identify periods when the market is either overheated or undervalued, particularly among short-term holders.

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