Bitcoin, the world’s largest cryptocurrency, has had trouble holding onto its value above $70,000, a key level it has tried to pass many times. As of press time, Bitcoin’s price sits at $68,836, only 0.02% higher than the day before. This suggests that Bitcoin needs more support to stay strong above $70,000, where the price has difficulty going higher.
Analytical platform CryptoQuant expert CoinLupin explains that Bitcoin’s value can be understood using the MVRV ratio (Market Value to Realized Value) tool. This ratio helps people see if Bitcoin’s price is too high or low based on its actual, on-chain activity.
Right now, Bitcoin’s MVRV ratio is around 1.0, which means its market price is double what it would be based on on-chain activity. According to CoinLupin, this suggests Bitcoin’s price is in an upward trend, but it still has room to grow even higher.
Mt.Gox Moves $2.2B BTC to Two Unknown Wallets: ReportBitcoin Active User Stability
The data provided by Glassnode, which tracks active addresses, indicates the volume of individuals engaged in buying or utilizing Bitcoin. Since August, this data has shown a steady range, with between 546,000 and 870,000 active addresses daily. While this constant activity is positive, it also hints that new users aren’t joining as much as hoped.
Another factor that affects Bitcoin’s price is the behavior of “whales.” Data from IntoTheBlock shows that whale transactions, or trades worth a lot of money, reached a high of 24,070 on October 29 but fell to 13,300 by November 3. This drop in whale activity could mean these big investors are being cautious, which may hold back Bitcoin’s price. If it increases, whale activity might help push Bitcoin back past the $70,000 level.
Election Bear Trap
Meanwhile, crypto analyst Crypto Rover shared in an X post on Tuesday that Bitcoin is in a “pre-election bear trap.” This means he believes Bitcoin is temporarily low before rising after the U.S. elections. He even pointed out that the Bitcoin return usually goes up in November during election years, with an average increase of 42.71%. According to him, this could be the wrong time to sell.
With big investors holding back, steady user interest, and optimistic hopes around the election, Bitcoin may soon try to break through $70,000 again. Investors would watch closely to see if Bitcoin finally exceeds this mark.
