The MVRV ratio, a key market indicator, is showing signs of divergence as unrealized profits decline despite rising Bitcoin prices, according to CryptoQuant. This pattern, reminiscent of 2017, could indicate weakening momentum, although it was previously followed by significant price surges. Historically, the MVRV 'profit floor' between 1.7 and 1.8 has provided strong support, aligning with a Bitcoin price range of $91,800 to $97,200.
Currently, Bitcoin is forming a broadening wedge pattern, which suggests high volatility and potential market exhaustion. Despite these signals, new buyers are absorbing supply, and increased regulatory clarity could attract more market participants.
MVRV Divergence Suggests Caution Amid Bitcoin's Rising Prices
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