Bitcoin's MVRV (Market-Value-to-Realized-Value) indicator has reached levels not seen since April, suggesting a return to a 'profit floor' and a potential buying opportunity. According to CryptoQuant, the MVRV ratio, which has historically found support between 1.7 and 1.8, indicates reduced selling pressure at these levels. Bitcoin is currently trading at $101,600, with the MVRV suggesting a price range of $91,800 to $97,200 as a strong support zone.
Despite a bearish divergence in the MVRV indicating weakening momentum, this does not necessarily signal a bear market. Bitcoin's price action is forming an 'expanding wedge' pattern, pointing to potential short-term volatility. However, new buyers are absorbing supply, possibly bolstered by the anticipated approval of the CLARITY Act, which aims to provide regulatory clarity for digital assets in the U.S. by the end of the year.
Bitcoin MVRV Indicator Signals 'Profit Floor' as Buying Opportunity Emerges
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