Bitcoin (BTC) MVRV Ratio Faces Resistance At 365 SMA — What This Means For Price

The last trading week saw Bitcoin produce another price rebound as the premier cryptocurrency moved to reclaim the $95,000 price region.

In the quiet hours of Saturday morning, a renowned crypto analyst has highlighted a crucial development that could decide the immediate future of Bitcoin.

As the premier cryptocurrency continues to recover from recent lows and approaches the $95,000 price region, speculations over its ability to sustain the current uptrend remain.

However, bullish momentum seems to have stalled in the past day amidst a minor retracement and an ongoing price consolidation.

Now, popular crypto analyst Burak Kesmeci has focused on potential developments that could decide BTC’s price movement in the immediate future.

Bitcoin MVRV Faces Resistance At 365 SMABurak Kesmeci, a recognized crypto analyst on X (formerly Twitter), has pointed out that Bitcoin’s MVRV is now encountering an important resistance at its 365-day simple moving average (365SMA).

According to the analyst, potential developments from this situation are crucial for determining Bitcoin’s mid-term future. The Bitcoin MVRV ratio (Market Value to Realized Value) is a significant on-chain metric used to assess whether Bitcoin’s trading price is relatively overvalued or undervalued in comparison to its realized price.

Technically, the MVRV is employed to identify profitability, but this metric can also be used to signal market stages, such as a price top/bottom, or to determine the current price trend. Meanwhile, the MVRV 365SMA, which calculates an average of all MVRV ratios over the past 365 days, represents a critical threshold for medium-term reversal.

Usually, when the MVRV remains below the 365SMA, it signals a bearish market, whereas a crossover above the 365SMA is seen as a bullish confirmation.

Following recent market changes, Bitcoin’s MVRV is currently at 2.13, only slightly lower than its 365SMA, which stands at 2.14. To confirm a long-term bullish market despite recent gains, an upward crossover between the MVRV and its 365SMA must occur, signaling a potential medium-term trend reversal following the prolonged correction phase in early 2024.

Bitcoin Network Fees Climb By 42%In other developments, on-chain analytics firm IntoTheBlock has revealed that Bitcoin network fees surged by 42% over the past week as traders engaged heavily, spending $4.03 million on transaction fees.

Moreover, crypto exchanges saw net outflows of $356 million. Although this figure is significantly lower than the $1.3 billion reported last week, it indicates that many investors are still choosing to keep their assets.

Both the increased network activity and sustained exchange outflows highlight strong underlying demand and positive sentiment in the Bitcoin market.