Key data suggests now may be a prime time to buy Bitcoin

Bitcoin (CRYPTO:BTC) continues to hold above the $60,000 mark, but it has struggled to break past the $70,000 resistance level. 

After a brief rise to $64,000, Bitcoin faced a correction, dropping to $62,340—a decline of 1.8% in the past 24 hours. 

Despite these fluctuations, some analysts see this as a potential buying opportunity.

CryptoQuant analyst “Darkfost” emphasised the importance of the Non-Realized Profit metric. 

He explained that high levels of unrealized profits often indicate potential selling pressure, as traders may be inclined to take profits. 

On the other hand, negative Non-Realized Profit levels suggest that traders are holding positions close to or below their entry prices, which could signify that the market is approaching a bottom and a buying opportunity may arise. 

“Currently, we are in the negative zone most of the time, which could indicate potential opportunities,” Darkfost said.

Another key indicator, the Market Value to Realized Value (MVRV) ratio, provides further insights. 

This ratio compares Bitcoin’s current market value to its realized value. 

A high MVRV ratio can signal overvaluation, while a lower ratio suggests undervaluation and a potential buying window. 

Recently, Bitcoin’s MVRV ratio increased from 1.74 last month to 1.94, indicating the market is approaching a more balanced state but still has room for growth.

In addition to these metrics, Bitcoin’s whale activity has also surged. 

According to data from IntoTheBlock, transactions over $100,000 have risen sharply, climbing from below 13,000 to over 15,000, indicating increased interest from institutional investors and high-net-worth individuals. 

These factors combined suggest that the market may be nearing a favorable entry point for investors looking to buy Bitcoin.

At the time of writing, the Bitcoin price was $62,303.12.