Bitcoin Rally Not Over Yet? Short-Term Holder MVRV Suggests Further Upside

Bitcoin (BTC) also reinforces slightly less than $ 120,000 sign, fears are escalating about whether the upper momentum of the upper encrypted currency fades. However, some analysts believe that BTC still has an area of growth, referring to the key indicators on the chain.

Bitcoin is far from completing

According to Cryptoquant Quicktake Post by the Darkfost shareholder, the Bitcoin Rally has not yet ended. The analyst points to a short -term market value (STH) to the achieved value index (MVRV) as a guide.

Related reading

For context, STH MVRV measures the Bitcoin profitability that investors maintain in the short-term-usually those who got BTC during the past 155 days-by comparing the current market price to an average purchase price.

When STH MVRV is high, it indicates that short -term holders are in profit and may sell. On the contrary, low or negative MVRV indicates a lack of advanced value and the possibility of further bullish direction.

Darkfost noted that during the current market cycle, the unrealized profits between STH did not exceed 42 %. Historically, every time the Sth MVRV reaches about 1.35-which indicates a 35 % unintended profit-it has led to a wave of profit, followed by the decline in prices in the short term.

As of now, STH MVRV is about 1.15, which is much lower than the profit achievement area. This analyst attributes this to the STH price of more than $ 100,000 for the first time in Bitcoin’s history on July 11. At the time of writing this report, this achieved price increased from $ 102,000, providing BTC a strong support base.

Bitcoin Sth Mvrv is currently about 1.15 | source: Cryptoquant

To clarify, the STH price indicates the average price in which all bitcoin currency has been obtained by short -term holders. When the current market price for Bitcoin remains higher than this level, it reflects the increasing market confidence among new investors.

Darkfost added that BTC can rise by 20-25 % before Sth MVRV reaches its critical level again. If this drop continues, it can be Bitcoin Perhaps he was hit $ 150,000 before the next wave of profit is widely achieved.

Fresh liquidity may help, but be careful

Bitcoin may also benefit from the new liquidity that enters the market. Fellow of Cryptoquant Amr Taha recently High Deposit worth $ 2 billion in major derivative trading platforms, indicating the accumulation of potential financial lever.

Related reading

Likewise, the conditions of the macroeconomic economy are expected to support the assets of risks such as bitcoin. The last weakness in the dollar Nourish Optimism about capital rotates in cryptocurrencies and other high -risk assets.

However, the BTC flows to the central stock exchanges were steadily to rise Also, a short -term correction proposal can be on the horizon. At the time of the press, BTC is trading at 118,862 dollars, a decrease of 0.2 % in the past 24 hours.