Bitcoin’s price has seen a 19% increase recently, reaching $64,342 but is encountering resistance at $65,000. Investors are known for taking profits at this level, potentially reversing the upward trend.
The Market Value to Realized Value (MVRV) Ratio indicates a danger zone, suggesting profit-taking might trigger a price decline. Historically, this happens when the MVRV Ratio is between 2% and 12%.
Short-term Net Unrealized Profit/Loss (NUPL) data shows that short-term holders are experiencing notable unrealized profits, indicating a likelihood of selling, adding to the downward pressure on Bitcoin’s price.
If profit-taking continues, Bitcoin could fall below the $63,068 support, potentially reaching $59,666. A breach of this support may lead to further declines unless selling pressure decreases.
However, if optimism persists, Bitcoin might surpass the $65,000 resistance, negating the bearish outlook and continuing the bullish trend.
