Short-Term Bitcoin Holders See 10% Profit – Potential Impact On Price?

Bitcoin has experienced a moderate recovery after a 15.7% correction in the latter half of December 2024. The market value to realized value ratio (MVRV) for short-term holders (STH) is currently at 1.1, indicating a 10% profit for those who acquired Bitcoin within the past 155 days. This suggests there might be increased selling pressure as these holders move to realize their gains, leading to short-term price resistance. However, the MVRV ratio has previously reached peaks of 1.35 and 1.44, indicating that short-term holders may tolerate higher profitability levels before triggering a sell-off. If the current price recovery continues with rising demand, the STH MVRV ratio could rise closer to these historical peak levels, confirming Bitcoin's market uptrend. The $87,000 price zone is a pivotal value, acting as a support during bullish trends or resistance in a market downtrend. There is an air pocket between $87,000 and $71,000 with low trading activity or fewer significant buy orders in this price range. If the price of BTC falls below $87,000, it will hit no significant support until $71,000, potentially leading to a major price decline. Bitcoin is currently trading at $98,081 with a market cap of $1.94 trillion, ranking as the largest asset in the crypto market. The ongoing market dynamics and STH MVRV ratio indicate potential price movements in the coming days.