Bitcoin (BTC) has entered a correction phase, dropping below $115,000 due to increased profit-taking by investors and diminished expectations of a Federal Reserve interest rate cut. According to analytics platform Santiment, Bitcoin's 365-day Market Value to Realized Value (MVRV) ratio stands at 21%, indicating that the average investor who purchased BTC over the past year is currently in profit. This situation places Bitcoin in a 'mild danger zone', as it raises the risk of further profit-taking, potentially driving prices lower.
Santiment analysts noted that while the MVRV ratio is not at extreme historical highs, it suggests a healthy correction following new all-time highs, with prices likely to remain sideways or slightly down in the near term. However, in a contrasting bullish signal, Bitcoin whales (wallets holding 10 to 10,000 BTC) have been aggressively accumulating, purchasing an additional 23,000 BTC in the last 72 hours even after BTC reached its $124,000 ATH, indicating strong belief in further price appreciation.
Technical analysts are closely monitoring key support levels between $108,000 and $112,000, with figures like Lark Davis and Michaël van de Poppe highlighting the importance of these ranges for potential stability. Historical patterns suggest that such corrective phases often precede year-end rallies, with Daan Crypto Trades noting that 'any larger flushes in the next 1–2 months could be the last larger dip for the Q4 end of year rally.'
