2024

Bitcoin

when

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
The Market Value to Realized Value (MVRV) ratio, a popular indicator used to gauge the profit and loss of Bitcoin (BTC) holders, has&nbsp;<a href="https://x.com/ali_charts/status/1764969462799777965?s=20" rel="noopener noreferrer nofollow">reached</a> a critical threshold that has historically been a precursor to significant price corrections. Crypto analyst Ali Martinez brought attention to this trend through a tweet, warning that the Bitcoin MVRV indicator has climbed to 19.57%.&nbsp;
<blockquote>
 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> MVRV indicator is at 19.57% right now! Since February 2021, each time it crossed the 18% threshold, <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> price plunged by 24% to 55%. Traders should monitor this trend as it anticipates a steep price correction! <a href="https://t.co/kj3ysZPC46" rel="noopener noreferrer nofollow">pic.twitter.com/kj3ysZPC46</a>— Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1764969462799777965?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 5, 2024</a>
</blockquote>
This is a notable increase, especially when considering that since February 2021, in each instance the indicator surpassed the 18% mark, it was followed by a notable decrease in Bitcoin's&nbsp;<a href="https://u.today/1-million-bitcoin-advocate-samson-mow-comments-on-btc-surge-as-it-nears-70000" rel="noopener noreferrer nofollow">price</a>, ranging between 24% and 55%. The MVRV ratio is a valuation metric that compares the market value (the current price) of Bitcoin to its realized value (the average price at which each Bitcoin last moved).
<h2 dir="ltr" id="is-bitcoin-price-correction-coming">Is Bitcoin price correction coming?</h2>
Typically, a high MVRV ratio suggests that the price is overvalued relative to its "fair" value, which can lead to a&nbsp;<a href="https://u.today/several-bitcoin-etfs-bleed-funds-as-btc-price-flirts-with-all-time-high" rel="noopener noreferrer nofollow">sell-off</a>, while a low ratio indicates undervaluation. With the ratio currently sitting at 19.57%, there is mounting concern among traders and investors about a potential steep price correction in the near future.
This warning comes amid a remarkable rally on the Bitcoin market. As of the latest updates, Bitcoin has been trading at $66,733, marking a 2.45% increase in the last 24 hours and an impressive 54.74% surge in the last 30 days. This has pushed Bitcoin's market capitalization up by 2.46%, reaching a staggering $1.3 trillion. However, the potential for volatility is underscored by recent market activities.
According to CoinGlass&nbsp;<a href="https://www.coinglass.com/currencies/BTC" rel="noopener noreferrer nofollow">data</a>, there has been a total of $158.37 million in Bitcoin liquidations over the last 24 hours. Breaking this down further, $65.31 million were in long liquidations, while short liquidations accounted for $93.07 million. This indicates a high level of market activity and potentially speculative behavior, which could exacerbate the effects of any potential price corrections.

Bitcoin (BTC) MVRV Indicator Hits Warning Level - Price Drop Coming?

Table of Contents

U_Today

Other articles published on Mar 5, 2024

PEPE Coin Captures Attention with Meteoric Rise

Wilder World (WILD) Price Prediction 2025, 2026, 2027, 2028, 2029 and 2030

BitcoinCash Weekly News March 4th 2024 by the Bitcoin Cash Foundation

BTC Price Approaches $68600 All-Time High Looms; Rally Expected

Bitcoin Liquidations Surge As BTC Retreats Sharply From New All-Time High

Bitcoin Vs. CBDC: VanEck Advisor Advocates BTC Adoption Amid BRICS Latest Move

Join our free newsletter for daily crypto updates!