Hope

Bitcoin

Resistance

when

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin’s short-term holder’s MVRV ratio is retesting the 155-day moving average, which could trigger a significant price rally.</li>
 <li>However, the recent uptrend momentum has weakened at the $65K resistance level on price charts.</li>
</ul>
<h2 id="bitcoin-s-price-resistance-retest">Bitcoin’s Price Resistance Retest</h2>
<p>Bitcoin [BTC] is currently retesting a significant price resistance. If this resistance is broken, it could potentially lead to a significant price rally. The short-term holder’s MVRV (Market Value to Realized Value) ratio for Bitcoin is now retesting the 155-day moving average (MA), according to on-chain analyst Checkmate. Historically, a move above this MA has triggered a substantial rally.</p>
<h2 id="understanding-mvrv-and-its-implications">Understanding MVRV and Its Implications</h2>
<p>The MVRV ratio is a valuation metric used to determine whether Bitcoin is overpriced or undervalued. MVRV values above 1 signal that most holders have unrealized profit. Conversely, values below 1 indicate that short-term investors are holding at a loss on average, which usually happens during price consolidation and signals that Bitcoin is undervalued.</p>
<p>In addition to being a valuation tool, the STH MVRV also serves as a support and resistance level when tracked using the 155-day MA. As of now, the metric’s value is edging towards 1 and is on the verge of crossing the 155-day MA. The previous instances when STH MVRH moved above the 155-day MA were in Q1 2024 and Q4 2023. Both times, Bitcoin rallied significantly, leading to profits for short-term investors.</p>
<p>If this trend repeats itself, Bitcoin could be set for a likely run. If the resistance is cleared and a surge occurs, Bitcoin could potentially reach $66K and $70K, according to Checkmate.</p>
<p>However, on price charts, a key hurdle at $65K has muted the lower timeframe momentum. This hurdle, highlighted by trader Skew, could make it difficult for Bitcoin to clear $65k in the short term. If this is the case, Bitcoin could potentially drop to $61K.</p>

Is There Still Hope For Bitcoin Bulls? Critical MVRV Ratio Retest Unveiled

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CoinEagle.com

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