Bitcoin seems to have ended a few weeks of volatility and a meeting of 11%.which indicates a significant change in market growth. Hopefully, this move has brought renewed interest from market participants who may be willing to re-enter the market.
However, an on-chain analyst has come forward to explain why Bitcoin traders should be cautious at this time. According to market research, the best entry point may not be near current prices.
MVRV Ratio, Stock Value Reveals Short-Term Strength, But Not Market Top
In a recent Quicktake post on the CryptoQuant platform, blockchain analyst GugaOnchain delved for reasons that may not be the time to re-enter the Bitcoin market. The analyst started by showing the change in the Market Value to Realized Value (MVRV) Ratio, based on the Realized Price metric.
According to GugaOnchain, the MVRV ratio is currently above the 30-day moving average of 1.2947, indicating that the recent rise in the price of Bitcoin has been confirmed. Backing this up, the Bitcoin Taker Buy/Sell Ratio on Binance has also shown an increase in buying aggressiveness, reinforcing the idea that market participants are actively pushing prices higher.
At this time, a the big macroeconomic picture it shows that the market is still entering a very hot phase. This is because the current MVRV reading around 1.3856 is much lower than the SMA-365 (called macro line), which stands around 1.8620.
Technical Indicators A Signal to Increase the Bitcoin Market – Next Direction?
From a pricing perspective, however, Bitcoin’s price may be due for a rebound. According to market research, Bitcoin recently started to break the daily resistance – a move that continues.
However, the Relative Strength Index (RSI) is now showing difficulties. This is due to the recent reading of the RSI at 67.85, which stands near the overbought area of 70.
Likewise, the Bitcoin market is high pullback opportunity in the near future. The expert confirmed that it would be better to buy Bitcoin “not at this resistance,” but under the recovery instead.
In the event that the price of Bitcoin returns, the crypto expert explained that this could be “support in the way” – especially at the levels between $ 70,000 and $ 65,000. At the time of writing this, the price of BTC stands at about $77,014, showing a jump of 2.8% from the previous day.
