Bitcoin MVRV Death Cross Signals Potential Price Decline
Bitcoin is facing selling pressure as the Market Value to Realized Value (MVRV) ratio indicates a bearish signal. The MVRV has formed a death cross, suggesting potential downward price trends.
MVRV Death Cross and Its Implications
- The MVRV ratio compares Bitcoin's market capitalization with its realized value.
- A death cross occurs when the short-term MVRV moving average falls below the long-term average.
- This pattern historically precedes price corrections after reaching local peaks.
- Currently, Bitcoin's 30-day MVRV is below the 365-day average, raising concerns about further volatility.
Bitcoin is struggling to maintain support above $82,000, following a drop from $87,000. Analysts warn that failure to hold this level could see prices fall below $80,000, potentially leading to deeper corrections. Predictions suggest a possible decline to $70,000 if bearish conditions persist.
Support and Resistance Levels
- Key support is seen at $82,000; failure to hold may result in significant price drops.
- Next major demand zone is below $80,000.
- For recovery, Bitcoin needs to reclaim $85,000 and maintain it as support.
- Resistance is noted between $85,000 and $87,000, crucial for any bullish momentum.
As of now, Bitcoin is trading at approximately $82,003.08, down 1.21% in the last 24 hours.