Bitcoin Market Enters Reset Phase Amid Cooling Demand

Bitcoin's market has entered a reset phase as its MVRV ratio slipped below its 180-day moving average. This shift in the market could create new accumulation opportunities, but it does not confirm a bottom for the cryptocurrency.

Analysts have been monitoring the MVRV ratio closely, as it can indicate whether the market is trading at a premium or entering a cooling phase. The ratio has fallen from above 2.2 late last year to the 1.4-1.5 area in May, which some consider a high-conviction accumulation zone.

Julio Moreno's data suggests that total Bitcoin demand entered contraction after growing since early March, with speculative demand from perpetual futures cooling down. This could indicate a reduction in forced selling pressure and a cleaner setup for the market.