- The RPV ratio indicates a decrease in enthusiasm for Bitcoin’s bullish path.
- Trader sentiment remains positive and volume, velocity and forex reserves show the strength of the market.
According to data from glassnode, Bitcoin’s RPV, or earnings-to-value ratio, has fallen significantly in recent days. This ratio compares the market’s take profit to the grid’s valuation, and a drop in it indicates that much of the enthusiasm for the bull market has dissipated.
This could have consequences for bitcoin holders in the short and long term.
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HODLers will be tempted
The decrease in RPV was reflected in the increase in MVRV, indicating that most holders would benefit from selling. The long/short spread remained negative which also motivated short holders as they could collect the most profits.
Another indication of this is the decrease in the number of titles in losses. to me glass knot The number of lost addresses has reached its lowest level in 8 months. This may indicate that many titles may tend to sell their holdings during this period.
Traders show faith
Despite the decline in RPV, traders’ sentiment remained positive. According to data from Coinglass, 51.2% of all trades were longs on Bitcoin. This indicates that traders are still optimistic about the future of Bitcoin and believe that it will continue to rise in value.
In addition, another positive indicator for Bitcoin is the decrease in foreign exchange reserves, as it indicates a decrease in selling pressure. This means that there is less supply in the market, which may contribute to an increase in prices.
In addition, bitcoin volume also increased from 14.56 billion to 31.1 billion in the last month. Its speed also decreased during this period, indicating that BTC was not being transferred between addresses and addresses were holding onto their coins. This may indicate that Bitcoin holders are becoming more confident in Bitcoin’s long-term potential and are less likely to sell their positions.
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In short, a decrease in the RPV indicates a decrease in enthusiasm for the bullish path. On the other hand, positive trader sentiment, declining foreign exchange reserves, and increasing volume and velocity indicate market strength.