Bitcoin finally escapes undervalued zone...Massive rally initiated as realized profits surge

▲ Bitcoin (BTC)/AI-generated image

Bitcoin (BTC) has successfully defended the $81,000 mark and has begun to improve its fundamentals for a long-term upward rally, starting with a positive shift in realized profits.

According to cryptocurrency media outlet FXStreet on May 7 (local time), Bitcoin is successfully maintaining the psychological resistance level of $81,000 amid gradually improving market conditions. The recent stable positive shift in investors' realized profits is analyzed as a key driver for price support, effectively absorbing selling pressure in the market. With large capital inflows and positive on-chain data combined, the virtual asset market has secured a solid foundation for growth.

On-chain indicators show that the current price trend is not just a temporary rebound but is based on robust underlying strength. The technical indicator Market Value to Realized Value (MVRV) confirms that Bitcoin still has room for further upside. Even as both short-term and long-term holders are recording profits, a strong holding tendency is observed instead of large inflows to exchanges, further solidifying the market's downside rigidity.

The continuous decrease in Bitcoin holdings on exchanges exacerbates supply shortages and acts as a catalyst for price increases. As the volume of assets moving from centralized exchanges to external wallets increases, the liquid supply that can be immediately sold in the market has sharply decreased. Amid concerns about a potential supply shock, institutional investors' steady accumulation activities are continuously pushing up Bitcoin's price support levels.

The macroeconomic environment is also shifting in a favorable direction for risk assets, supporting market optimism. With signs of global inflation slowing down and expectations of interest rate freezes spreading, a steady inflow of institutional capital into the virtual asset market has been observed. The net inflow of funds through Bitcoin spot ETFs remains stable, positively impacting liquidity supply and asset value revaluation.

Bitcoin has broken through key technical resistance levels and subsequently formed new price support levels, laying the groundwork for a long-term ascent. Investors are closely monitoring changes in on-chain indicators and the movements of supply and demand entities to explore the market's future direction. The various positive indicators currently observed clearly demonstrate that the virtual asset market has entered a stable growth trajectory.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*