**CoinWorld Reports:**
**Bitcoin Maintains Momentum Despite Falling Below $70,000**
**Insights from MVRV Indicator Suggest Potential Surge**
After multiple attempts to break through the $70,000 mark, Bitcoin has once again fallen below this resistance level, highlighting potential challenges in maintaining upward momentum on the charts.
As of this writing, the cryptocurrency is trading at $68,581, reflecting a slight 0.3% increase in the last 24 hours. This suggests that additional market forces may be needed to secure a sustained move above $70,000.
Behind Bitcoin’s recent price movement, CryptoQuant analyst CoinLupin shared insights into Bitcoin’s MVRV (Market Value to Realized Value) cycle. According to the analyst, “As we approach key events in November, the MVRV ratio offers a traditional analytical method to assess Bitcoin’s value amidst broader market factors.”
At the time of writing, the MVRV ratio is around 2, indicating that Bitcoin’s market value is twice the estimated on-chain value. CoinLupin does not solely focus on the current MVRV value but emphasizes this trend by utilizing tools such as the 365-day Bollinger Bands and the four-year average of the MVRV to better understand Bitcoin’s cycle.
Currently, the MVRV ratio has already surpassed the annual average, indicating that, despite Bitcoin’s continued northward trend, there is still potential for higher cyclical peaks.
**Long-Term Price Indicators and Future Targets**
According to the analyst, the MVRV level at the time of this report suggests a sustained upward trajectory, but it has not yet reached historical peak levels, which typically range between 3 and 3.6 on the MVRV scale.
Assuming a stable realized value, the analyst estimates that BTC would need to increase by 43-77% to reach price targets between $95,000 and $120,000.
The analyst also noted that increased market interest and buying momentum could drive the realized value higher, indicating that future peaks might surpass these levels based on previous cycles.
Beyond the MVRV, CoinLupin highlights that Bitcoin has significantly risen over the past year. However, it has only recently approached the MVRV indicator’s average level, maintaining a positive momentum.
**Examining Key Bitcoin Indicators and Market Interest**
Further insights into Bitcoin’s ongoing performance can be gleaned by examining its on-chain indicators. For example, retail interest, as represented by active addresses, remains relatively stable, according to data from Glassnode, with this metric staying within a consistent range since August.
Despite recent price fluctuations, the number of active addresses has remained within a range, fluctuating between 870,000 and 546,000 active addresses over the past few months. This stable activity might indicate sustained interest in BTC, though new retail participation may be limited. The lack of strong directional movement in active addresses could imply that while existing users remain engaged, a significant influx of new participants has not yet materialized. This may be necessary for BTC to establish a more solid upward trajectory.
In addition, studying whale transactions—a key indicator of large holders’ behavior—provides another perspective on Bitcoin’s potential.
Data from IntoTheBlock revealed that Bitcoin’s whale transactions recently peaked at 24,070 on October 29, then dropped to 13,300 on November 3.
The decline in large transactions suggests a temporary reduction in whale activity, which could affect Bitcoin’s short-term momentum. The decrease in whale transaction volume might indicate that larger holders have temporarily paused buying or selling activities, potentially cooling Bitcoin’s price action.
Should whale activity pick up again, it could provide a boost to Bitcoin’s price, potentially helping the asset break through critical resistance levels.
