Key Points
- Bitcoin’s price remains steady around $95,000, despite potential selling pressure indicated by increasing whale transfers.
- The MVRV ratio and active address growth suggest market optimism, despite the price stagnation.
The price of Bitcoin [BTC] has been stable around the $95,000 mark for a few weeks now. This is despite the bearish attempts to lower the price below this level.
Market Dynamics and Whale Activity
The stagnation in Bitcoin’s price has led to an analysis of the underlying market dynamics. A CryptoQuant analyst, Onatt, observed a rise in the volume of Bitcoin transferred to exchanges by active whale addresses after the U.S. presidential election, where Donald Trump emerged victorious.
However, the Adjusted SOPR metric, which gauges profit-taking activity, does not yet show significant sell-offs. The large influx of Bitcoin could indicate potential short-term selling pressure. Yet, the fact that these assets have not been sold suggests they might be allocated for other uses, such as over-the-counter transactions or collateral.
Key Indicators to Monitor
Understanding Bitcoin’s trajectory can be aided by its MVRV ratio and active addresses. The MVRV ratio, a measure of market capitalization relative to realized capitalization, helps assess whether Bitcoin is overvalued or undervalued. A ratio above 1 signifies profitability for most holders, while values of 3.7 signal overvaluation. At the time of writing, Bitcoin’s MVRV ratio is 2.57, indicating moderate profitability.
Also, Bitcoin’s active addresses, a reflection of network activity and retail interest, have been steadily increasing since August 2024, according to data from Glassnode. Despite a brief decline to below 750,000 on the 1st of December, the number of active addresses has rebounded to over 900,000. This resurgence suggests growing participation in the network, which could support price stability and potentially indicate bullish momentum if it continues.