Bitcoin has been trading below the crucial $100,000 mark following a week of heightened volatility and selling pressure. The cryptocurrency experienced a sharp 9% drop last Sunday, and despite a brief recovery on Monday, the market remains uncertain as selling pressure persists.
According to key metrics shared by Axel Adler on X, the Bitcoin Short-Term Holder (STH) MVRV indicator has declined from $98,000 and a value of 1.35 to average levels. This suggests that short-term holders have been actively taking profits during this period of market turbulence. Historically, an STH MVRV above 1.30-1.35 indicates an overheated market, often leading to significant sell-offs. The recent decline in the indicator potentially marks the end of a local overheated phase.
As Bitcoin consolidates below $100,000, market participants are closely monitoring key support and resistance levels to anticipate the next major move in this unpredictable environment. The current profit-taking and volatility have negatively impacted altcoins and meme coins, leading to bearish price action across the market. Analysts are increasingly calling for a correction as bulls show signs of fatigue and price movements hint at further declines on the horizon.
If demand remains strong, Bitcoin may enter a consolidation or sideways trading phase following this period of profit-taking. However, a drop in the STH MVRV below 1.0 would signal the formation of a local bottom, potentially setting the stage for a future rally. As the market navigates this uncertainty, monitoring these key metrics will be crucial in anticipating Bitcoin’s next move.
Bitcoin is currently trading at $96,700 after several days of sideways movement within a tight range between $100,000 and $95,600. The lack of clear direction and momentum has created an atmosphere of uncertainty, leaving traders on edge as Bitcoin hovers near key support levels. If the $95,000 support level fails to hold, a deeper decline into the $90,000 demand zone could follow, signaling increased selling pressure and potentially extending the current consolidation phase.
On the other hand, reclaiming the $100,000 level is crucial for bulls to regain control and push the price higher. However, without a strong push above this psychological resistance, Bitcoin’s price action is likely to remain choppy and uncertain. Market participants are watching closely for any signs of a breakout or breakdown, as the next move could define Bitcoin’s trajectory in the coming weeks. For now, caution remains the prevailing sentiment.
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Tags: Bitcoin, BTC, Bitcoin price, Bitcoin analysis, short-term holders, profit-taking, market volatility, $100K resistance