Bitcoin (BTC) continues to face resistance just under the $120,000 mark, struggling to build enough momentum for a breakout. Over the past 24 hours, the cryptocurrency has remained in a tight trading range above $118,000, representing a slight decline of nearly 4% from its most recent all-time high.
CryptoQuant contributor CoinCare highlighted the role of the Market Value to Realized Value (MVRV) ratio in assessing Bitcoin’s position in its current market cycle.
“Historically, when the MVRV ratio converges toward its long-term average, it tends to rebound and move toward overvalued territory, often accompanying price growth,” the analyst noted.
A separate analysis from another CryptoQuant analyst, AxelAdlerJr, examined Bitcoin’s market structure based on investor dominance metrics.
According to AxelAdlerJr, the steady increase in activity from new market participants since July 2024 suggests that fresh liquidity is entering the market, supporting ongoing bullish sentiment.
At the same time, long-term holders are selling moderately, with a coefficient of 0.3, meaning that the supply from coins held for three years or more is being absorbed without triggering sharp market corrections.
Featured image created with DALL-E, Chart from TradingView
