Bitcoin has swiftly recovered from recent geopolitical tensions, reclaiming the $107,000 level. However, according to a new report by CryptoQuant, on-chain metrics are flashing signs of slowing momentum, particularly through the lens of the MVRV Ratio.
The Market Value to Realized Value (MVRV) Ratio — which compares BTC’s current market cap to its realized value — has long served as a tool to assess potential market tops. CryptoQuant notes that the 365-day moving average (365DMA) slope of the MVRV Ratio is now flattening, a development that has historically preceded major cycle peaks.
While this trend doesn’t suggest an immediate reversal or downtrend, it does indicate that Bitcoin may be entering the late stage of the current bull cycle. This phase, according to CryptoQuant, often leads to heightened volatility and requires greater attention to capital preservation and risk management.
“Bull markets typically end with a ‘final blaze’ — an explosive surge before the peak,” the report stated. “While short-term opportunities remain, the long-term signals from on-chain data should not be ignored.”
The warning comes as Bitcoin continues to show resilience in price action but begins to display potential macro exhaustion signals. CryptoQuant suggests investors stay cautious, even as tactical upside remains, pointing to on-chain metrics as key tools for navigating the months ahead.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/market/bitcoin-rebounds-to-107k-but-mvrv-momentum-signals-caution/