Analyst: Bitcoin May Face Major Selling Pressure at $118K as MVRV Hits Key Levels

In Brief:

The MVRV ratio for short-term Bitcoin holders is currently 1.09, according to CryptoQuant analyst AXEL.

Selling pressure is projected to intensify at MVRV levels of 1.25 ($118K) and 1.35 ($128K), potentially starting in early June.

On May 15, CryptoQuant analyst AXEL highlighted a key on-chain indicator suggesting that Bitcoin could face notable selling pressure around the $118,000 mark. The analysis focuses on the Market Value to Realized Value (MVRV) ratio for short-term holders (STH), which currently sits at 1.09.

Historically, MVRV levels above 1.25 have coincided with short-term holders realizing profits, triggering sell-offs. AXEL estimates that the first wave of selling could begin around the $118,000 price point, with stronger resistance likely near $128,000 if the MVRV climbs to 1.35.

Based on Bitcoin’s current pace of growth, the STH MVRV may reach 1.25 by early June and climb to 1.35 by the end of the month. These levels represent psychological and profit-taking thresholds where traders may begin offloading BTC to secure gains.

Traders and investors are advised to monitor MVRV trends closely, as they can serve as early indicators of market shifts and potential pullbacks amid ongoing bullish momentum.

‍