Bitcoin’s value has remained relatively stable around the $95,000 mark recently, showing a lack of significant movement. Despite efforts from market bears to drive the price below this crucial level, Bitcoin has managed to hold its ground, indicating resilience with limited upward momentum.
Over the previous week, Bitcoin experienced a modest uptick of 1.1%, while in the last 24 hours, there was a slight decrease of 0.4%, with the current trading price standing at $95,463.
The stagnant price of Bitcoin has led analysts to delve deeper into the underlying market forces at play.
An analyst from CryptoQuant named Onatt pointed out a noticeable trend in the activity of large traders following the U.S. presidential election, specifically after Donald Trump’s victory.
Onatt highlighted a significant increase in the volume of Bitcoin being transferred to exchanges by prominent whale accounts since November 5th.
Despite this notable influx of Bitcoin, the Adjusted SOPR metric, which tracks profit-taking behaviors, does not suggest any major sell-off activities at present.
While the increased flow of Bitcoin could hint at potential short-term selling pressures, the fact that these holdings have not been liquidated indicates they might serve other purposes, such as off-exchange transactions or collateral.
This cautious stance adopted by major players reflects a strategy of observing and waiting, emphasizing the importance of closely monitoring these movements for any possible impact on the market.
Crucial Metrics to Monitor
The trajectory of Bitcoin’s market behavior can be better assessed by considering key metrics such as the MVRV ratio and active addresses.
Specifically, the MVRV ratio, which gauges market capitalization in relation to realized capitalization, provides insights into whether Bitcoin is currently overvalued or undervalued.
A ratio above 1 typically indicates profitability for most holders, whereas values exceeding 3.7 may indicate overvaluation. As of now, Bitcoin’s MVRV ratio stands at 2.57, suggesting a moderate level of profitability.
While this figure doesn’t point towards Bitcoin being in an overbought state, it underscores the importance of monitoring this metric for signs of potential market overheating or a corrective phase.
Furthermore, the increase in Bitcoin’s active addresses, which act as a representation of network activity and retail interest, has been consistent since August 2024 according to data from Glassnode.
Though the number of active addresses briefly dropped below 750,000 on December 1st, it has since rebounded to over 900,000. This resurgence in active addresses showcases a growing engagement with the network, which could contribute to price stability and potentially signal a bullish trend if sustained.