Bitcoin Shows Positive Trend as Investor Profitability Remains Strong

Bitcoin’s current market behavior suggests a continuation of its upward trend with investor profitability staying robust, according to a recent Glassnode report.

MVRV Momentum is an analytical tool used to evaluate the strength and direction of market trends by assessing the average unrealized profit of Bitcoin investors. It compares the current MVRV (Market Value to Realized Value) ratio to its 365-day moving average.

When the MVRV ratio exceeds its 365-day average, it often signals a strong upward trend, with investors typically seeing increased profitability and possibly expanding their positions during market pullbacks.

Conversely, if the MVRV ratio falls significantly below its 365-day average, it indicates a substantial amount of Bitcoin has entered unrealized loss, which can lead to investor caution and more conservative trading strategies.

In early July, the Bitcoin MVRV ratio dropped to and stabilized around its 365-day moving average, suggesting that the upward trend for 2024 remains valid and that investor profitability is still positive.

Many analysts believe that we are not even halfway through the bull market and that Bitcoin is yet to experience exponential growth, reaching unprecedented heights.

Despite this, Bitcoin is experiencing strong volatility after it peaked at $70,000 this week, following Donald Trump’s appearance at the Bitcoin 2024 conference in Nashville, USA.

At the time of writing, BTC is priced at $64,680 after a 2.3% decline in the past 24 hours and registered $36.4 billion in trading volume.

Alexander Stefanov