Bitcoin MVRV Reset Signals Market Cooling

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  Bitcoin stabilizes above the 135-day moving average, signaling market resilience.
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  Young Supply MVRV resets to 1.0, indicating a cooling from speculative highs.
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  Potential accumulation phase looms as smart money regroups.

Bitcoin Holds Strong Above 135-Day SMA

Glassnode’s latest analysis reveals a significant shift in Bitcoin’s market dynamics. The cryptocurrency has stabilized above its 135-day moving average, a key technical indicator suggesting resilience amid recent volatility. Accompanying this, the Young Supply Market Value to Realized Value (MVRV) ratio has reset toward 1.0, signaling a cooling from speculative extremes. This combination indicates a market transitioning from hype-driven rallies to a more balanced consolidation phase, a critical juncture for long-term investors.

Reset Signals Possible Accumulation Phase

The chart plots Bitcoin’s price against the 135-day Simple Moving Average (SMA) and the Young Supply MVRV approximation. The price, which dipped below the SMA during bearish phases, has now reclaimed and held above this level, reflecting growing investor confidence.

Meanwhile, the Young Supply MVRV—measuring the valuation of recently moved coins—spikes during speculative booms but has now normalized, suggesting short-term holders are either realizing profits or holding steady. Historically, such resets often precede accumulation phases, hinting at potential for a future rally.

Bitcoin Positions for Its Next Chapter

This development is a breath of fresh air for the crypto market, which has seen wild swings in recent years. The stabilization above the 135-day SMA, combined with a balanced MVRV, suggests smart money is regrouping, setting the stage for sustainable growth. However, uncertainties remain, and investors should monitor for any break below this support level, which could signal a dip. For now, Bitcoin appears to be laying a foundation for its next chapter, making it a focal point for traders and analysts alike.