Key Points
- Bitcoin’s Market Value to Realized Value (MVRV) ratio and Global In/Out of the Money (GIOM) data reveal an interesting picture of its current state.
- Most Bitcoin addresses are profitable, and its price action reflects growing volatility.
Bitcoin’s On-Chain Metrics Show Interesting State
Bitcoin, currently trading around $87,000, has caught investor attention due to its recent highs and significant shifts in its on-chain metrics.
The Market Value to Realized Value (MVRV) ratio, one of these indicators, along with the Global In/Out of the Money (GIOM) data, provides insights into potential market behavior and holder profitability.
Heated Market Indicated by Bitcoin MVRV Ratios
The 30-day MVRV ratio for Bitcoin was 15.01%, and the 365-day ratio was 37.99% at press time. These levels suggest that Bitcoin holders have accumulated significant unrealized profits.
Elevated MVRV ratios historically correlate with periods of heightened market activity, leading to either profit-taking or continued bullish momentum. The high level of the 365-day MVRV suggests that long-term holders are seeing substantial gains, potentially triggering increased selling pressure.
Majority of Bitcoin Addresses are Profitable
According to data from IntoTheBlock, 53.61 million Bitcoin addresses, representing 99.35% of all addresses, are currently profitable. Around the current price, 69.58% are in the money, 0.11% are at the money, and 30.30% are out of the money.
This breakdown highlights strong support levels, as the high percentage of “in the money” addresses suggests a strong support base for Bitcoin. The 30.30% out-of-the-money addresses could create resistance as Bitcoin approaches levels where these holders break even.
Bitcoin’s Price Action Reflects Growing Volatility
Bitcoin’s price recently touched $88,666 before retracing to $87,435. This price action underscores the asset’s growing volatility as it continues to climb higher following the bullish breakout from its consolidation phase around $68,000.
The daily chart highlights a strong upward trend supported by the 50-day and 200-day moving averages, currently at $68,321 and $64,148, respectively. The recent rally has pushed Bitcoin into overbought territory, as evidenced by the Relative Strength Index (RSI) at 84.88. This suggests a potential cooldown phase before any further upward movement, especially if profit-taking intensifies.
Market Outlook: Caution or Continuation?
The combination of high MVRV ratios and overwhelmingly profitable addresses paints a bullish picture for Bitcoin. While some resistance may emerge from out-of-the-money addresses seeking to exit at breakeven, the underlying market sentiment remains optimistic.
Investors will likely monitor these metrics closely as Bitcoin navigates uncharted territory, with its next major milestone potentially crossing the $90,000 barrier.