tl;dr
Bitcoin (BTC) is experiencing short-term volatility but shows strong fundamentals according to Glassnode data. After pulling back from its all-time high above $109,000, BTC has rebounded from April lows near $75,000 and is consolidating above $94,000, with 88% of its supply in profit. The Market Val...
Bitcoin shows remarkable resilience as 88% of its circulating supply remains in profit despite experiencing short-term volatility and consolidating above $94,000. Glassnode data reveals that Bitcoin’s Market Value to Realized Value (MVRV) ratio has reset to a long-term mean, indicating a period of market consolidation backed by strong fundamentals.
The Realized Profit/Loss Ratio surpassing 1.0 signals growing trader confidence and sufficient liquidity to absorb profit-taking, a robust sign of market strength. Macro indicators and low volatility further suggest Bitcoin is in an accumulation phase, reducing the risk of panic selling among holders.
Short-term price action remains modest, with BTC trading near $94,000—up 13% over the past month—though it faces potential supply pressure approaching the psychological $100,000 level. Sustained upward momentum will depend on continued demand, whether from ETF inflows, corporate treasury purchases, or retail investor interest amidst cautious sentiment.
Despite a pullback from its all-time high above $109,000, Bitcoin has rebounded strongly from lows near $75,000 in April and shows a well-supported foundation beneath market fluctuations. The MVRV ratio’s alignment with its long-term average parallels previous consolidation phases, such as in August 2022, often preceding renewed upward moves.
Trader behavior reflects optimism, with realized profits indicating balanced profit-taking rather than panic. Analyst observations of Bitcoin’s Composite Volatility Index reinforce that the market remains in a quiet accumulation mode, setting the stage for potential future gains.
However, caution is warranted as Bitcoin nears key resistance near $100,000, historically associated with increased distribution by long-term holders. To maintain and build momentum, strong buyer interest will be critical as May progresses, making the market environment dynamic and closely watched.