The Bitcoin MVRV ratio is currently falling to its long-term average, causing bullish sentiment among its favourable historical priorities.
In particular, Bitcoin’s recent price activity has included short-term uncertainty following an impressive gathering from late April. After a nearly 16% surge from $84,466 on April 19th The best local at $97,938 On May 2nd, there will be a flagship cryptocurrency. We have entered a period of stagnation.
Over the past two days, Bitcoin has seen consecutive daytime losses, with early market signals suggesting a possible three consecutive drops today, suggesting that the current price is around $93,901. Despite this lull, on-chain indicators may indicate a brewing revival.
Bitcoin MVRV ratio in bullish position
One of the most important The signal comes from the Bitcoin MVRV ratio and is now raised to a long-term average of 1.74. According to In Glass Node, This level represents the reset zone that is normally seen during the integration phase.
Bitcoin MVRV Ratio | GlassNode
Historically, such pullbacks have cooled unrealized profits and set the market a new bullish cycle. A notable instance occurred in August 2024 when Bitcoin MVRV ratio hit this same level. The strong uptrend continued afterwardsBitcoin recorded its monthly profits for three consecutive times from September to November 2024.
The rally was extended until December, and the wealth of assets reached an all-time high of $108,364 due to growing optimism surrounding Donald Trump’s presidential victory. Bitcoin experienced a modest 3.17% revision at its peak, but the market was strong.
especially, Bitcoin MVRV ratio Recently back to 1.74, markets suggest May I’m experiencing it Similar resets could potentially prime another leg.
In context, metrics measure the ratio between markets value It helps to realize value and measure Bitcoin when it is overvalued or undervalued. When the ratio drops to average, this usually indicates a stage of market stabilization, with room for momentum to be updated.
Other on-chain metrics to support bullish outlook
In addition to Bitcoin MVRV ratio, several other chain metrics We will lend you support A bullish outlook. Currently, 88% of the Bitcoin supply in circulation remains profitable, with losses mainly concentrated among investors who purchase between $95,000 and $100,000.
88% of the #bitcoin supply leaves behind profits, with losses concentrated among buyers ranging from $95,000 to $100,000. The metric also recovers from its long-term average, indicating a broad reset of investors’ expectations without widespread surrender. pic.twitter.com/fl2odrp0br
– GlassNode (@GlassNode) May 5, 2025
This distribution means that most holders are still in good position; that The market has not experienced any major surrender. What’s more prominent This profitability metric has also recovered from the long-term average, indicating a healthy correction rather than a panic-driven selloff.
Furthermore, the realized profit/loss ratio rose above 1.0. this indicates It means that on average, sellers are now realizing profits rather than losses. Importantly, current demand suggests that it is strong enough to absorb the pressure to gain profits, a positive sign of a potential market recovery.
Bitcoin achieved profit loss ratio | GlassNode
The Bitcoin market is mixed
On the other hand, there is in the market analysis. Mixed. Pseudonymous analyst Bitble remains strong and bullish. With his latest rating on the daily chart, he identified breakouts from a calm wedge pattern.
$ BTC bullish
Breakout from fallen wedges
• Beautiful structure
• Strong momentumWe are currently retesting our breakout zone (blue circle).
The next leg can send us to 130k+.
Disabled below 86k. pic.twitter.com/ehygdne3dp
– Bitbull (@akabull_) May 5, 2025
He emphasized that the breakout boasts strength. Bitcoin We are currently retesting our breakout zone. this It suggests that it can be set up for another upward movement. Bitbull estimates that the next rally could drive prices above $130,000, making it more likely that downside risk would only increase if Bitcoin fell below $86,000.
Meanwhile, Carl Moon, a well-known market analyst and founder of Moonshaw, is not completely bullish. He observed today that Bitcoin is broken from a four-hour chart rising wedge, usually bearish signal.
🚨#bitcoin may be at risk! $BTC broke this rising wedge. At the moment it doesn’t seem to have enough volume to rise.
The next support is ~$91,700. If not retained, the following is $88,500: pic.twitter.com/ecnc6bguwa
– Carl Moon (@themooncarl) May 5, 2025
According to Moon, current price action doesn’t have the volume needed to maintain the upward trend. He called attention to the nearest support level of $91,700, warning that violations below this point could lead to Bitcoin falling to $88,500.
