Bitcoin Seller Risk Ratio Drops to 0.086%, Marking a Significant Historical Low
The latest drop in the seller risk ratio and the potential bullish crossover in MVRV momentum are bringing optimism back to the market.
Diving Below Historical Levels
The Bitcoin seller risk ratio has fallen to 0.086%, marking the lowest level in months.
Historically, this indicator dropping below 0.1% signifies a strong rebound area, reflecting suppressed profits relative to market capitalization.
These low-risk periods are typically associated with investor hesitation to sell, alleviating price pressure.
The last time this ratio dipped below this level was during the Bitcoin correction in September 2024, just before a recovery to new highs in the fourth quarter.
Currently, the ratio again indicates limited risk in taking profits, laying the groundwork for a potential reversal if buying momentum returns.
Bitcoin MVRV Approaching Bullish Crossover
The 70-day MVRV momentum is on the verge of breaking above its moving average, a historically confirmed bottom.
The MVRV ratio, which compares market value to realized value, is commonly used to identify undervalued areas.
The Bitcoin MVRV ratio has remained below the 70-day average for several weeks, reflecting the setups observed in late October and January.
A confirmed breakout could serve as a final confirmation of the bottom, especially as the broader macro environment stabilizes.
Bitcoin Price Struggles Below Key Moving Averages
At the time of writing, Bitcoin is trading around $81,100, with the 50-day and 200-day moving averages at $84,934 and $93,916, respectively.
The inability to reclaim the 50-day MA remains a short-term concern. However, technical setups and on-chain indicators suggest that sellers have exhausted themselves, and accumulation is gradually returning.
If BTC recovers to $85,000, it could unleash bullish momentum towards the psychological barrier of $90K. Until then, the market may remain range-bound, with the current setup favoring accumulation strategies.
