Bitcoin May Be Gear Up for Its Next Major Move as a Key Indicator Has Hit a Reset Level

Bitcoin, the first and largest cryptocurrency, may be gearing up for its next major move as a key Bitcoin indicator has hit a key reset level.

Bitcoin (BTC) may be setting up for its next major move as a key indicator has hit a key reset level, according to Glassnode.

According to the on-chain analytics firm, Bitcoin's MVRV Ratio pulled back to its long-term mean of 1.74. This marks a cooling of unrealized gains, similar to the August 2024 unwind, and could serve as support if held.

Other indicators suggest that Bitcoin may be on the verge of a significant move. The Bitcoin percentage supply in profit metric has also rebounded from its long-term mean, indicating a broad reset of investor expectations without widespread capitulation. Currently, 88% of the Bitcoin supply remains in profit, with losses concentrated among buyers in the $95,000–$100,000 range.

Likewise, the BTC Realized Profit/Loss Ratio has moved back above 1.0, signaling a shift toward profit-taking. This rebound, Glassnode stated, reflects improving market sentiment and suggests demand is strong enough to absorb profit realization, supporting the case for recovery.

Bitcoin price action

At press time, Bitcoin was trading flat on the day at $94,310. The crypto market experienced selling pressure on Monday, with only a few crypto assets in green as investors focused on the Federal Reserve meeting and interest rate decision scheduled for later this week.

Markets are anticipating the Fed's interest rate announcement on Wednesday. According to CME Group's FedWatch tool, traders were last pricing in a more than 98% chance that the central bank would keep interest rates constant. However, investors will be eager to examine the Fed's policy statement and the post-meeting news conference for signals about the future path of interest rates.

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