Bitcoin (BTC) has bounced back above $97,000, marking a 2.3% recovery after dropping to $94,000 last week.
While this upward move is encouraging, recent on-chain activity suggests that long-term holders might be influencing BTC’s price trends.
Dormant Bitcoin Movement Raises Questions
On February 10th, approximately 14,000 BTC, dormant for seven to ten years, were suddenly moved. However, these coins were not sent to exchanges, implying that they were not meant for immediate liquidation.
According to CryptoQuant, the holders of these coins likely acquired them at much lower prices, meaning they could still be waiting for higher profit margins before selling.
This shift in dormant coin activity could signal renewed confidence among long-term investors.
Bitcoin’s MVRV Ratio Declines – A Buy Signal?
Another important metric, the Market Value to Realized Value (MVRV) ratio, has been declining.
The MVRV ratio compares Bitcoin’s market capitalization to the total value of coins at their last movement on the blockchain.
- January 21st: MVRV ratio stood at 2.52
- February 9th: MVRV ratio dropped to 2.23
A falling MVRV ratio often indicates market undervaluation, which can attract long-term investors looking for entry points.
However, if the ratio continues to decline, it could also signal market weakness and investor caution.
What’s Next for Bitcoin?
With long-term holders showing activity and the MVRV ratio declining, Bitcoin’s price could see further volatility.
If BTC maintains momentum above $97K, a push towards $100K could be possible. However, if selling pressure increases, another dip could be on the horizon.
For now, investors are watching closely as Bitcoin’s next move unfolds.
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