BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

Bitcoin Poised for Major Breakout or Major Retracement? (Here is What You Need to Know)

by Sham
August 27, 2024
in CRYPTO
Reading Time: 3 mins read
A A
1
SHARES
20
VIEWS
Share on XShare in TelegramShare on Reddit
  • Bitcoin has entered an uncharacteristic period of calm, according to a Glassnode report, with key indicators suggesting the cryptocurrency market is experiencing a rare equilibrium.
  • The MVRV (Market Value to Realized Value) ratio has tested its all-time average value of 1.72, historically marking a transition point between bull and bear market trends.
  • Significant portions of Bitcoin supply held by short-term investors are transitioning to long-term holder status, while speculation in perpetual swaps has reset, potentially impacting future market volatility.

Bitcoin (BTC) has entered an uncharacteristic period of calm, according to a recent analysis by blockchain analytics firm Glassnode. However, there are signs that this equilibrium will not last long.

Bitcoin $BTC has been trading within the same channel for 6 months straight

Are we going up or down from here? pic.twitter.com/nDqcWLKB5q

— BlockNews.com (@blocknewsdotcom) August 27, 2024

MVRV Ratio Points to Transition Period

One of the most telling metrics highlighted in Glassnode’s report is the MVRV (Market Value to Realized Value) ratio. This indicator compares Bitcoin’s current market price to the average price at which coins were last moved, effectively measuring the average profit or loss of all Bitcoin holders.

Over the last two weeks, the MVRV ratio has tested its all-time average value of 1.72. This critical level has historically marked a transition point between a macro bull versus bear market trend.

An MVRV ratio above 1 indicates that the current market value exceeds the realized value, suggesting that the average holder is in profit. Testing the 1.72 level is particularly significant after the excitement surrounding the launch of Bitcoin spot ETFs. This suggests that investor profitability has essentially reset to an equilibrium position.

Investor Activity and Capital Flows Cooling Off

Adding to the intrigue, Glassnode’s report notes a marked cooling in net capital flows into Bitcoin assets. Investors are engaging in only marginal profit and loss-taking activities. The report points out that “89% of days experience a capital inflow larger than today, excluding during loss-dominant bear markets.”

Further complicating the picture, a significant portion of Bitcoin supply held by short-term investors is on the verge of transitioning into long-term holder status. This shift could also impact market swings in the near future.

Derivatives Market Sees Decline in Leveraged Positions

In the derivatives market, speculation in perpetual swaps has experienced a full reset, according to Glassnode. The ratio between price and net liquidation volume volatility is approaching levels not seen since February 2022. This indicates a significant decline in traders’ appetite for leveraged positions.

Typically, this metric returns to a neutral level near inflection points such as a continuation of the trend or a reversal back into a macro scale bearish trend. The report suggests the current calm may precede heightened volatility.

Conclusion

In summary, Bitcoin is experiencing a rare period of equilibrium according to several key market indicators. However, Glassnode’s analysis suggests this calm is unlikely to persist, and volatility may be on the horizon. The cooling of investor enthusiasm and decline of leveraged speculation points to a potential inflection point in the market. Bitcoin traders should brace themselves for a bumpy ride ahead.

Tags: BitcoinBitcoin Spot ETFsBlockchainGlassnode
TweetShareShare
Previous Post

UAE Demands Access to Telegram CEO Pavel Durov After Arrest in France

Next Post

Ethereum’s Vitalik Buterin Reveals Modest $140K Annual Salary Amid Financial Scrutiny

DON'T MISS THESE! HOT OFF THE PRESS

Toncoin and Telegram: The Sleeping Giant of 2025?
BITCOIN

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL
BITCOIN

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules
CRYPTO

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Connecticut Bans Bitcoin and Crypto for Government Funds
BITCOIN

Connecticut Bans Bitcoin and Crypto for Government Funds

July 1, 2025
Shiba Inu: Turning $3,000 into $10,000 – The Math Behind the Meme
CRYPTO

Shiba Inu: Turning $3,000 into $10,000 – The Math Behind the Meme

July 1, 2025
FARTCOIN Surges 148%—Is the Meme Just the Beginning?
CRYPTO

FARTCOIN Surges 148%—Is the Meme Just the Beginning?

July 1, 2025
Load More

Related News

Toncoin and Telegram: The Sleeping Giant of 2025?

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Donald Trump Threatens Elon Musk with DOGE Audit

Donald Trump Threatens Elon Musk with DOGE Audit

July 1, 2025
Jerome Powell Says July May be Too Early for Rate Cuts, But Doesn’t Rule it Out

Jerome Powell Says July May be Too Early for Rate Cuts, But Doesn’t Rule it Out

July 1, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.