- Bitcoin’s NVT ratio has remained below 50 since July 7, reflecting strong network activity and growth potential despite recent price correction.
- MVRV levels remain below overheated thresholds, suggesting the market has not entered euphoria and still holds potential for further expansion.
- Miner reserves are steady at 1.805M BTC, with limited selling this year, while aSOPR signals balanced profitability across current transactions.
While prices face a pullback, multiple indicators confirm the market is not at overheated levels. Analysts point to accumulation and stable reserves as supportive signals for further growth.
Accumulation and Exchange Reserves Support Market Stability
Bitcoin’s latest correction has fueled speculation about whether a cycle top may be forming. However, on-chain metrics present a different narrative, suggesting the asset remains in a healthy growth phase. CryptoQuant analyst Carmelo Alemán explained that current conditions align more with correction periods than euphoric market peaks.
According to a post shared by CryptoQuant on X, “although Bitcoin is undergoing a correction, there is still potential for growth if demand holds.” This assessment is supported by continued accumulation among long-term holders, who appear to be increasing their positions despite short-term volatility.
Exchange data further strengthens this position. Bitcoin is holding on to the exchanges with a declining trend, which tells us there is little selling pressure. Historically, such behavior has been coupled with periods of consolidation ahead of upward price breaks, as investors continue to hold assets off the market in anticipation of elevated valuations.
The Network Value to Transactions (NVT) ratio provides additional evidence. Since July 7, the NVT has stayed below 50, a level consistent with robust network activity compared to market capitalization. This suggests that the asset is far from overvalued and continues to see strong on-chain utility.
MVRV, Miner Activity, and Profitability Ratios Indicate Room for Growth
Beyond NVT, other indicators confirm that Bitcoin remains far from overheated levels. The Market Value to Realized Value (MVRV) ratio, which often signals excessive euphoria near 3.6, remains below critical thresholds. This absence of investor exuberance suggests that the market has not yet entered peak-cycle conditions.
In prior cycles, MVRV levels near or above 3.6 were closely tied to all-time highs. The current range reflects a more measured environment, where prices are not detached from realized value. This implies additional room for growth before extreme valuations emerge.
Miner behavior also offers important insight into the current cycle. Reserves remain stable at 1.805 million BTC, with only 6,000 BTC sold this year. In previous market peaks, miners typically sold aggressively to secure profits. Their restrained approach now signals confidence in future appreciation.
The Adjusted Spent Output Profit Ratio (aSOPR) further supports this outlook. While the ratio has remained above 1, levels are not sustained at overheated ranges. Extended high readings often mark cycle tops, but the current data points to a healthier balance in market profitability.
