Cryptocurrency

Bitcoin

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/profit-taking-leads-to-potential-bitcoin-market-correction" rel="noopener noreferrer nofollow">Profit-Taking Leads to Potential Bitcoin Market Correction</a><br></p>
<p style="text-align: justify">Cryptocurrency analysis firm Glassnode has commented on the recent movements within the <a href="https://en.bitcoinhaber.net/historic-week-for-crypto-potential-etf-approvals-set-to-boost-bitcoin-and-ripple-markets" rel="noopener noreferrer nofollow">Bitcoin</a> market, suggesting a potential correction phase. Despite the impressive 175% surge Bitcoin has witnessed this year, there’s increasing evidence that points to a market pullback. Investors, now staring at substantial portfolio gains, are considering profit-taking, a common market behavior that typically follows robust rallies.</p>
<h2 id="profit-realization-triggers-selling-pressure">Profit-Realization Triggers Selling Pressure</h2>
<p style="text-align: justify">In their latest YouTube discussion, Glassnode has shared observations of the current market dynamics for Bitcoin. They note that the appetite for risk-taking appears to be diminishing, as evidenced by the sell-off of assets by long-term holders, who are realizing profits at a historic high. The substantial daily cash inflow required to absorb these sales is seen as a precursor to a market slowdown.</p>
<h2 id="indicators-predicting-an-overheated-market">Indicators Predicting an Overheated Market</h2>
<p style="text-align: justify">Glassnode brings attention to two significant metrics, the MVRV ratio, and the Active-Value-Investor-Value (AVIV) ratio, which provide insights into market valuation. The MVRV ratio compares Bitcoin’s market value with its realized value, hinting at a potentially overvalued state. Meanwhile, the AVIV ratio, a measure that factors out inactive coins, similarly suggests a deviation from its norm, indicating the possibility of an upcoming market correction.</p>
<p style="text-align: justify">Both ratios have historically served as reliable indicators for predicting market corrections. The firm suggests that it is reasonable to expect a period of increased volatility and resistance in market growth during such times.</p>
<p style="text-align: justify">Despite the speculative nature of these assessments, Glassnode’s analysis underscores the cyclical patterns of the <a href="https://en.bitcoinhaber.net/warning-bells-for-bitcoin-and-ethereum-analyst-predicts-downturn" rel="noopener noreferrer nofollow">cryptocurrency</a> market and the impact of investor behavior on Bitcoin’s price stability.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/profit-taking-leads-to-potential-bitcoin-market-correction" rel="noopener noreferrer nofollow">Profit-Taking Leads to Potential Bitcoin Market Correction</a></h5>

Profit-Taking Leads to Potential Bitcoin Market Correction

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