Returns are in "pain zone": signals price reversal

Short-, mid-and even long-term trade returns are in the “pain” zone, which historically signals an impending price reversal.

This is demonstrated by MVRV, one of the most widely used on-chain indicators in the market. When exactly it will happen is still a big concern.

Holding at loss

The MVRV measure displays the difference between an asset’s current price and its average price during its lifetime.

Due to rising earnings, more people will start trying to sell their assets when the ratio reaches high levels.

We may use the indicator to assess if an asset is overbought or oversold.

Investors may often sell their shares for a 100% profit at an MVRV value of 100%, or 2.0, which is traditionally the precise time at which the price of a cryptocurrency reverses.

No matter how long they keep the asset, the majority of investors are now holding it at a significant loss, according to data supplied by the indicator.

Right present, all periods and investor groups still view Bitcoin as underbought.

Relative Strength Index, the MVRV indicator’s “technical equivalent,” also indicates that Bitcoin is balancing between an oversold and normal condition since it might just about leave the undervaluation zone and return to its usual market state.

Due to a lack of purchasing power that would have supported a surge that began on June 20, digital gold has lost 12.5% of its value over the previous seven trading days.

Since inflows to the cryptocurrency market are still at relatively modest levels, volume profiles indicate that the first coin cannot exhibit any form of volatility.

At the time of publication, Bitcoin is trading at $19,160 and has lost 0.4 percent of its value in the previous day.

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