Also, an insightful indicator of the MVRV Ratio suggests that investor profitability has essentially reset to equilibrium position and that the excitement and exuberance after the BTC ETF launch in the U.S. this January are not there anymore.
The Sell-Side Risk Ratio indicator also proves the “equilibrium” theory: the majority of coins is moved near its original acquisition price.
All of these metrics hint at volatility spikes coming for the largest cryptocurrency, researchers stressed:
As of press time, Bitcoin (BTC) is trying to protect $61,500 level after being brutally rejected at $65,000 yesterday. However, only $29 million in positions have been erased in the last 24 hours, almost all longs.
Q2-Q3, 2024, were painful for newcomers. After setting the ATH in March, the confidence of new investors was tested by choppy sideways price action for several months. During this process, a significant volume of the Bitcoin supply has remained tightly held and is within the three-month to six-month age band.
Meanwhile, a notable share of supply held by new Bitcoiners is transitioning into long-term-holder status, having been held for at least 155 days.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
