Bitcoin (BTC) price continues to decline, currently trading 20% below its record high of $73,835. Despite this slump, onchain metrics suggest that Bitcoin is preparing for a significant move in the near future, according to a report by Glassnode.
The profitability of Bitcoin investors remains strong, with the average coin still holding a two-time profit multiple. The Market Value Realized Value (MVRV) metric indicates that a significant number of investors are still in profit.
Bitcoin’s accumulation between the $60,000 and $70,000 range has led to a lack of direction in the market. However, Glassnode highlights that Bitcoin’s price needs to remain above $50,000 for the macro bull market to continue.
Volatility in Bitcoin’s price has been declining, signaling lower volatility expectations among investors. This compression in volatility often precedes significant market movements.
The Sell-Side Risk Ratio has also contracted to historic lows, suggesting that the current trading range is nearing its next expansion.
It’s important to note that this article does not provide investment advice. Readers should conduct their own research and exercise caution when making investment decisions.