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recent volatility in **Bitcoin (BTC)** has rattled the crypto market once again. After sharp declines and sudden liquidations, fear levels have surged — but according to on-chain data, this may not signal the start of a deeper crash.
Market Panic vs. On-Chain Strength
While short-term traders brace for more downside, CryptoQuant analyst XVIN Research suggests the data tells a different story. Despite the recent turbulence, Bitcoin’s on-chain metrics remain resilient, indicating a **transition phase** rather than a market breakdown.
Over the past 24 hours, roughly $1.7 billion in leveraged positions — mostly longs — were liquidated across exchanges. Yet, exchange BTC balances continue to decline steadily, a key signal that investors are moving funds into self-custody, not selling off.
This trend mirrors what’s often seen during **market stabilization periods**, when smart money quietly accumulates instead of exiting positions.
“More than $1.7 billion in positions were liquidated, mainly from over-leveraged longs. Long-term holders are taking profits, while short-term traders face forced liquidations,” said XVIN Research.
“However, exchange reserves keep trending lower — meaning coins are leaving exchanges for self-storage, not being dumped. Historically, that’s a sign of consolidation, not collapse.”
Bitcoin MVRV Ratio Points to Possible Bottom Formation
Another critical metric, the **Market Value to Realized Value (MVRV) ratio**, currently sits around **1.8** — its lowest level since April.
According to CryptoQuant’s analysis, when the MVRV ratio falls into the **1.8–2.0 range**, it often marks the **beginning of an accumulation zone** or even a **medium-term market bottom**.
In past cycles, similar MVRV readings have preceded **price recoveries**, as panic selling gives way to renewed buying interest from long-term holders and institutional participants.
“Bitcoin’s MVRV ratio at 1.8 is flashing potential bottom signals amid widespread fear and liquidations,” the analyst added.
“Historically, this range has aligned with early recovery phases rather than extended bear markets.”
A Market in Transition, Not in Decline
Overall, the latest on-chain indicators suggest the Bitcoin market is **resetting**, not collapsing. Profit-taking among long-term holders appears to be slowing, and **stablecoin reserves remain high**, signaling that fresh capital still sits on the sidelines — ready to re-enter once volatility cools.
In short: the current environment reflects **a shift in market structure**, not a loss of confidence.
“With major profit-taking largely complete and stablecoin supply still elevated, the data points to transition — not a crash,” concludes XVIN Research.
Disclaimer: This content is for informational purposes only and should not be considered financial or investment advice.*
Source: https://cryptonews.net
