CryptoQuant Highlights Bitcoin’s ‘Oversold’ Status and Potential Rebound

The MVRV ratio, a key metric for assessing the value of digital gold, has dropped to 1.8, nearing the 2024 correction low of 1.71. These observations were shared by CryptoQuant.

According to experts’ calculations, the indicator will reach this extreme if the price of the leading cryptocurrency falls to $70,000.

They believe that the market is currently “sufficiently weakened” due to the lack of “paper” profits for most investors.

As a result, current quotes present a favorable zone for forming an upward movement without further significant decline.

Analysts suggested closely monitoring the following factors:

1. The strength and magnitude of the rebound.
2. Whale movements and changes in on-chain data during this period.
3. Correlation with the stock market and economic trends.

Experts warned that current metrics indicate the potential for a rebound. They clarified that it is too early to conclude that digital assets have entered a full-fledged bear cycle.

Some analysts suggest that Bitcoin may drop to $70,000 before a subsequent recovery. Additional pressure on the price could come from the expansion of trade wars by the US administration.

Earlier, Santiment suggested a depletion of the cryptocurrency market.