2025-02-18 06:00:01 by NewsBTC

The on-chain analytics firm Glassnode has revealed where the next Bitcoin support level could be based on different pricing models. Bitcoin Is Currently Retesting 1-Year MVRV Z-Score Mean In a new post on X, the on-chain analytics firm Glassnode has discussed about how BTC has been looking on a couple of pricing models recently. The first of these models is based on the Market Value to Realized Value (MVRV) Z-Score, which compares the market cap of Bitcoin with its realized cap and applies a standard deviation test to pull out the extremes. The “realized cap” here refers to an on-chain indicator that basically keeps track of the total amount of capital that the holders as a whole have invested into BTC. As the market cap represents the value that the investors are holding in the present, its comparison against this initial investment in the MVRV Z-Score provides information about the profitability of the userbase. Now, here is the model shared by the analytics firm, that uses the mean and two standard deviations (SDs) of the 1-year MVRV Z-Score to define Bitcoin price levels: Looks like the price of the coin is retesting the middle level of the model | Source: Glassnode on XAs displayed in the above graph, the mean of the MVRV Z-Score is situated at $96,300 right now. Bitcoin’s spot price has been trading around this mark recently, which suggests the MVRV Z-Score has been equal to its 1-year mean. So far, BTC has managed to recover back above this mean level each time it has plunged under it recently, but if the line ends up failing, the cryptocurrency might have to search for support elsewhere. From the chart, it’s visible that the next support level in this model is currently at $80,100. At this price, the 1-year MVRV Z-Score would be -1.5 SD away from its mean. This isn’t actually the next major on-chain support level that Bitcoin can rely on, however, as this second model shared by the analytics firm has a historically significant line that’s closer. The trend in the BTC short-term holder realized price over the last year or so | Source: Glassnode on XIn the above graph, the average cost basis (formally called the realized price) of the Bitcoin short-term holders is shown. The “short-term holders” (STHs) refer to BTC investors who purchased their coins within the past 155 days. The realized price of the STHs has often acted as an important support boundary during bullish periods. At present, this level is equivalent to $92,000. As such, before BTC can retest the lower MVRV Z-Score pricing band, it will have to go through this line. BTC Price Bitcoin appears to have declined under the 1-year MVRV Z-Score mean today as its price is now trading around $95,400. It remains to be seen whether this is only a temporary deviation or not. The price of the coin seems to have gone down over the past day | Source: BTCUSDT on TradingViewFeatured image from Dall-E, Glassnode.com, chart from TradingView.com Keshav Verma Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.