Bitcoin's MVRV Ratio Hovers Below 365SMA, Network Fees Surge 42%
1min read Bitcoin's recent price movements have garnered significant attention from analysts and investors. The leading cryptocurrency saw a notable rebound last week, reclaiming the $95,000 price region. However, this bullish momentum has since stalled, with the cryptocurrency experiencing a minor retracement and ongoing price consolidation. Speculations are rife regarding Bitcoin’s ability to sustain its current uptrend, with popular crypto analyst Burak Kesmeci offering insights into potential developments that could influence BTC’s price movement in the near future.
Kesmeci highlighted that the Bitcoin MVRV (Market Value to Realized Value) ratio is currently facing resistance at its 365-day simple moving average (365SMA). This metric is crucial as it measures whether Bitcoin’s trading price is relatively overvalued or undervalued compared to its realized price. The MVRV ratio is used to indicate profitability and can signal market stages, such as a price top or bottom, or identify the current price trend. The 365SMA represents a critical threshold for medium-term reversal, with a crossover above this level interpreted as a bullish confirmation. Conversely, when the MVRV remains below the 365SMA, it signals a bearish market.
Currently, Bitcoin’s MVRV stands at 2.13, just slightly below its 365SMA at 2.14. For a long-term bullish market to be confirmed despite recent gains, an upward crossover between the MVRV and its 365SMA must occur. This would signal a potential medium-term trend reversal following the prolonged correction phase in early 2025.
In other developments, on-chain analytics firm reports that Bitcoin network fees surged by 42% in the past week. During this period, traders spent $4.03 million on transaction fees, indicating a high level of network engagement. Additionally, crypto exchanges recorded net withdrawals valued at $356 million, suggesting that many investors are opting to keep their assets. Both the increase in network activity and sustained exchange outflows point to strong underlying demand and positive sentiment in the Bitcoin market.
Ask Aime: "Predict Bitcoin's next move after a 42% surge in network fees."
At the time of writing, Bitcoin continues to trade at $94,233 after a 0.78% decline in the past day. On larger timeframes, the premier cryptocurrency remains in profit with gains of 11.27% and 8.59% in the last seven and 30 days, respectively. The current market dynamics suggest that while there is potential for a price rally, the outcome will depend on whether Bitcoin can overcome the resistance at its 365SMA. Investors and analysts will be closely monitoring these developments to gauge the future trajectory of the cryptocurrency market.
