Bitcoin may struggle to return to all-time high levels anytime soon, as most Bitcoin investors are in the green and could look to take profits, says Santiment.
Bitcoin could be set for more sideways movement in the near term as an overvaluation metric is currently flashing red, signaling a higher likelihood of profit-taking among Bitcoin holders.
Bitcoin’s (BTC) Market Value to Realized Value (MVRV) ratio, an indicator that measures whether the asset is overvalued or not, currently stands at +21%, indicating that the average investor who purchased Bitcoin over the past year is comfortably in profit, sentiment platform Santiment said in a report published on Monday.
“While not at extreme historical highs, this is considered a mild danger zone, as it increases the risk of profit-taking,” Santiment explained.
