Experts Identify Key Level for Potential Correction Phase

The price of the leading cryptocurrency has reclaimed the crucial support at $56,000, yet uncertain trading suggests risks of resuming a downward trend. This is according to a report by CryptoQuant, as noted by The Block.

According to analysts, the MVRV indicator has fallen below the 365 DMA, which in previous cycles signaled a continuation of price declines.

A similar situation was observed during the COVID-19 crash in March 2020, the downturn in May 2021, and the onset of the bear market in November 2021, they added.

“Investors should monitor this metric to assess the possibility of a rebound or further correction. If this support fails, the price could drop to $40,000,” the experts advised.

Earlier, 10x Research identified U.S. economic indicators as the main factor in Bitcoin’s decline.

Previously, ForkLog discussed with experts the reasons for the dump and identified conditions under which major coins might begin to recover in price. Read the details in the article.