14 March 2025
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Bitcoin’s MVRV Ratio Approaches Key Level Indicating Possible Reversal
Bitcoin's price has increased by 1% in the last 24 hours, surpassing $83,000. However, it is down 9.3% over the past week and 24.7% from its all-time high.
Possibility Of A Deeper Correction in Bitcoin
- The market-value-to-realized-value (MVRV) ratio indicates potential overvaluation or undervaluation.
- Recent data shows that short-term BTC holdings rose significantly in March and December 2024, similar to patterns before corrections.
- Current MVRV ratio is 1.8, nearing a previous correction low of 1.71, suggesting a possible decline to the $70,000 range.
Market has been sufficiently lightened, favoring a potential upward move without significant drops.
Key Indicators Suggest a Potential Rebound
- Market conditions may be near a turning point despite bearish sentiment.
- Altcoins have lost recent gains, reducing the likelihood of further declines.
- A rebound is possible if major sell-offs are avoided, even without a drop to $70,000.
- Factors influencing recovery include price recovery strength, whale activity, on-chain metrics, and correlation with stock markets.
The outlook remains uncertain, but most cryptocurrencies are oversold, indicating a potential rebound.