- About 311,000 wallets have left the network in the last 10 days.
- The 30-day MVRV ratio suggested that the coin could see further gains.
Although Bitcoin [BTC] The price almost reached $68,000 again. On-chain data showed that the earlier correction resulted in significant exits. According to AMBCrypto's analysis, 311,00 non-zero addresses have left the Bitcoin network in the last 10 days.
Our research found that the exodus was a result of fear, uncertainty and doubt (FUD) as prices collapsed. However, anyone familiar with the market environment can confirm that this downturn is likely to cause panic.
The coin's showtime is not over yet
Instead, it gave whales the opportunity to buy cheap BTC at the expense of these “paper hands”. Additionally, Santiment data showed that Bitcoin typically benefits from such a scenario.
For example, between September and October 2023, 1.10 million non-zero addresses left the network. However, the result was a 28% price increase.
Source: Santiment
Likewise, some addresses left between January 21st and February 13th. But later, the price of BTC rose by 24%. At press time, Bitcoin had a 10-day performance of 3%.
If history repeats itself, Bitcoin could rise towards $83,000 in a few weeks. However, it is also important to look at BTC from a different perspective.
Therefore, AMBCrypto checked the market value to realized value ratio (MVRV). Typically, the MVRV ratio reflects the average gain or loss of all cryptocurrencies currently in circulation. It also shows whether an asset corresponds to fair value or not.
Will optimism return?
As of this writing, the 30-day MVRV ratio stands at 2.487%, suggesting that BTC holders have been hit hard by the recent correction. But the state of the metric seems to be good news for the price. With a ratio this low, there is the potential for Bitcoin's value to continue to rise.
On a seven-day basis, on-chain data showed that Bitcoin circulating supply had declined. At the time of going to press the circulation was 427,000 copies. That was almost 50% less than on March 11th.
Source: Santiment
In terms of price action, the drop in circulation means BTC may face less selling pressure. This allows the value of the coin to increase.
Additionally, AMBCrypto noted that the short-term sentiment around Bitcoin has changed. We came to this conclusion after analyzing the Short Term Holder-Net Unrealized Profit/Loss (STH-NUPL).
The STH-NUPL serves as an indicator of the behavior of short-term investors. As March began, the value changed from hope (orange) to optimism (yellow).
Read Bitcoins [BTC] Price prediction 2024-2025
However, the switch to the lighter color didn't last long. At the time of this writing, STH-NUPL was back in hope-fear territory, suggesting investors were skeptical about betting on a price rise.
However, at the same time, it indicates a slight decline in greed, suggesting that the market was not overheated. If this continues, the coin price could rise above $67,631.
Source: Glassnode
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