A severe warning was issued against Bitcoin (BTC) and the four major altcoins: "Recovery is indeed

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Bitcoin exceeded US$66,000, but Sanitation issued a short-term risk warning

Recently, the leading cryptocurrency Bitcoin continued its upward trend and successfully broke through the US$66,000 mark. The mainstream altcoins also showed a positive trend. However, on-chain analysis platform Sanitation warned that the short-term gains of Bitcoin and some major altcoins may face correction pressure.

The MVRV ratio has rebounded to positive territory.

Sanitation pointed out in its analysis that as the recovery signals of bitcoin and altcoins gradually increase, the 30-day MVRV ratio of the top cryptocurrencies in market capitalisation has rebounded above neutral levels. The indicator shows that mainstream currencies such as Bitcoin, Ethereum, and Ripple have entered the profit range in the past 30 days. This means that investors who bought Bitcoin, Ethereum, Ripple, Cardano and Chain during this period have now achieved small profits rather than losses.

The driving force for recovery comes from multiple positives.

Sand analysis believes that this round of recovery is mainly due to lower-than-expected inflation data, increased risk appetite in the global market, and demand for spot Bitcoin ETFs is heating up again. Although a return to positive MVRV ratios is seen as a positive sign, Sanitation warned that this could trigger profit-taking in the short term, increasing selling pressure. In other words, even if prices continue to rise, selling pressure may increase.

Short-term fluctuations may intensify

According to Sanitation, a positive MVRV data suggests that the recovery is real and healthy, but if the upward momentum weakens, short-term investors may choose to cash in profits, exacerbating price volatility. "The positive MVRV data tells us that the recovery is real, but it also reminds bulls that if momentum starts to cool, short-term gains could trigger a faster sell-off," Sanction noted.