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Bitcoin Price Action Cools — Traders Eye Fed Rate Decision in September
Bitcoin Price – Bitcoin appears to be entering a sideways trading phase after failing to sustain momentum above its recent all-time high. According to a new report from sentiment platform Santiment, the leading cryptocurrency is showing signs of overvaluation, increasing the likelihood of profit-taking among holders.
MVRV Ratio in the “Mild Danger Zone”
Santiment highlights that Bitcoin’s Market Value to Realized Value (MVRV) ratio currently stands at +21%, suggesting that the average investor who bought BTC in the past year is now well in profit. While this level is not historically extreme, Santiment warns that it falls into a “mild danger zone”, potentially triggering sell-offs as traders lock in gains.
At the time of writing, Bitcoin is trading at $115,800, around 6% below its record high of $124,128, which was hit just days ago. BTC had rallied 10% in the nine days leading up to the new peak, but the momentum has since faded.
Market Enters Consolidation Mode
Analysts at crypto exchange Bitfinex noted that the Bitcoin rally “quickly fizzled out”, citing a lack of macroeconomic catalysts to sustain the price surge. They emphasized that the market has now entered a consolidation phase, with traders adopting a “wait-and-see” approach ahead of key economic decisions.
One such catalyst is the U.S. Federal Reserve’s interest rate decision scheduled for September 17, with over 83% of market participants expecting a rate cut, according to the CME FedWatch Tool.
Whales Keep Accumulating Despite Volatility
Despite increased short interest—with $2.2 billion in shorts at risk of liquidation if BTC reclaims its ATH—Santiment reports that Bitcoin whales remain confident. Wallets holding between 10 and 10,000 BTC have continued to accumulate aggressively, even after the price peak.
This divergence between short-term caution and long-term accumulation suggests a complex market dynamic, with traders closely watching for the next macro trigger to break the current sideways trend.
