Bitcoin at ‘mild danger zone’ as BTC investors eye profit-taking
Bitcoin may struggle to return to all-time high levels anytime soon, as most Bitcoin investors are in the green and may look to take profits, Santiment said.
Bitcoin could be set for more sideways movement in the near term as an overvaluation metric is flashing red, signaling a higher likelihood of profit-taking among Bitcoin holders.
Bitcoin’s (BTC) Market Value to Realized Value (MVRV) ratio, an indicator that measures whether the asset is overvalued, currently stands at +21%, indicating that the average investor who purchased Bitcoin over the past year is comfortably in profit, sentiment platform Santiment said in a report published on Monday.
“While not at extreme historical highs, this is considered a mild danger zone, as it increases the risk of profit-taking,” Santiment said.
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