- Bitcoin’s current MVRV of 2.09 shows average holders doubled investments; past spikes preceded price peaks, per historical data.
- Short-term BTC holders panic-sell post-tariff news, while long-term investors hold steady as market signals remain mixed.
Trump’s Proposed EU Tariffs Intensify Crypto Market Volatility; Analysts Eye Bitcoin’s Bullish Signals
The crypto market faces added pressure after U.S. President Donald Trump proposed a 25% tariff on European Union imports, amplifying existing economic uncertainty. Bitcoin (BTC) dropped to $86,113, down 3.47% in 24 hours, per ETHNews, echoing declines seen after Trump’s earlier tariffs on Canada and Mexico.
Analyst Points to Bitcoin’s MVRV Ratio as Bullish Indicator
Crypto ETHNews analyst predicts Bitcoin’s Market-Value-to-Realized-Value (MVRV) ratio could peak at 3.2 this cycle, signaling potential gains ahead.
The MVRV ratio, which compares Bitcoin’s market cap to its realized cap, currently sits at 2.09, indicating holders have doubled initial investments on average. Chapo noted similar ratios preceded past peaks, including April 2021’s $58,253 price.
ETHNews echoed this outlook, stating MVRV spikes historically align with cycle tops when profit-taking outweighs new buying. Analysts suggesting bullish momentum may persist into 2025.
Short-term traders sold BTC amid the tariff news, while long-term holders maintained positions. The Global Bid & Ask ratio hinted at a possible market bottom, though volatility persists.
Bitcoin is trading at $84,728 USD, showing a 0.78% increase (+$657) in the last 24 hours. However, the asset has experienced a 12.28% decline over the past week and 16.95% in the past month. On a longer timeframe, Bitcoin has gained 43.40% in the last six months, with 48.55% growth in the last year.
RSI (Relative Strength Index)
The RSI is currently at 45, indicating that Bitcoin is in a neutral zone, neither oversold nor overbought. When the RSI value drops below 30, the market is considered oversold, and when it rises above 70, the market is overbought.
Since Bitcoin is hovering near 45, this suggests the price has room to either consolidate or push higher, depending on upcoming price action.
MACD (Moving Average Convergence Divergence)
The MACD line is above the signal line, signaling that the bullish trend may continue. However, the MACD histogram shows a decreasing momentum, hinting at the possibility of a trend reversal if price action fails to push higher.
The market could enter a range-bound phase, potentially setting up for a breakout, either bullish or bearish, depending on how price reacts to the next support or resistance.
Price Action and Key Levels
- Support Zone: Bitcoin is holding around $84,000. A failure to hold this level could send it lower, potentially testing the $80,000 – $82,000 region.
- Resistance Zone: Bitcoin faces resistance around $88,000 – $90,000. If Bitcoin manages to break above these levels, it could target the $100,000 range in the coming weeks.
