Bitcoin (BTC) has been in a downtrend for weeks, with analysts divided over what’s next.
While some analysts expect the decline to continue and drop to $70,000, some analysts think that Bitcoin has bottomed.
Evaluating Bitcoin’s movements at this point, CryptoQuant analyst argued that Bitcoin could recover without further sharp declines.
Stating that Bitcoin has entered the oversold region after the last correction, the analyst said that the Bitcoin MVRV ratio has fallen to the level of 1.8 and is approaching the 2024 low of 1.71.
According to the analyst, if BTC drops to $70,000, the MVRV ratio could reach last year’s lows.
However, the analyst said that BTC could potentially recover without further sharp declines as market sentiment has already weakened significantly, selling by large investors (whales) in the market has slowed down, and BTC is in oversold territory.
Finally, in response to questions about whether a bear market has begun, the analyst added that although market sentiment is weak, it is too early to conclude that BTC has entered a full-fledged downward cycle.
“The MVRV ratio, a key metric for assessing Bitcoin’s price, has fallen to 1.8, approaching the 2024 correction low of 1.71. If Bitcoin falls into the $70,000 range, the MVRV ratio could reach a level similar to the bottom of the 2024 correction.
However, market sentiment has weakened significantly at the moment, with altcoins surrendering most of their gains, leaving the majority of investors unprofitable this cycle. This suggests that even without an additional sharp decline, the market has already softened enough to become a suitable area for a potential upward move without the need for further significant declines.
Currently, the market is in the final stages of an upcycle and is experiencing a strong correction, which increases both risk and investment difficulty. When the market enters an oversold state at this point, the probability of a recovery also increases. Correlation with stock market and economic trends Despite the current recession, most cryptocurrencies, including Bitcoin, are oversold, suggesting that a recovery is not far off.
*This is not investment advice.
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