Bitcoin recently breached the $90,000 mark, prompting long-term holders to cash in their profits. This trend, noted by analysts, could stabilize the market while paving the way for further increases.
A few days ago, Bitcoin hit $90,000, setting a significant new record for the cryptocurrency. According to recent analyses, we have reached an initial safe zone for long-term holders. Furthermore, the MVRV (market-to-realized ratio) indicator, which is used to assess whether an asset is overvalued or undervalued, shows that the profits made by long-term Bitcoin holders are not yet at extreme levels. This suggests that selling pressure has not yet peaked.
Thus, profit taking by long-term holders at a price of $90,000 is not seen as a threat to the market. In fact, it can even help stabilize the market by preventing mass and sudden selling. Additionally, Bitcoin ETFs play a key role in absorbing selling pressure, which helps maintain price stability.
Analysts remain optimistic about the future of Bitcoin. Some of them predict that the cryptocurrency could reach $100,000 by the end of the year, supported by continued demand and growing adoption. However, it is essential to monitor metrics such as MVRV to assess potential risks and opportunities in the market.
In summary, profit-taking by long-term investors at $90,000 could stabilize the Bitcoin market. With ETF sales absorbed and demand continuing, Bitcoin is well positioned for future increases while maintaining market balance. | BGNES
