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.

Bitcoin (BTC) price chart on TradingView