Crypto News

Bitcoin’s MVRV Ratio Signals Potential Rebound Amid Market Uncertainty

Since February 2023, the Bitcoin MVRV Ratio has dipped below -8.40% on four occasions, each time triggering significant price jumps of 63%, 100%, 92%, and 28%.

With Bitcoin currently priced under $60,000 and the MVRV Ratio at -8.96%, this might be an ideal time to buy the dip.

The TD Sequential, a popular technical analysis tool, presents a buy signal on Bitcoin’s daily chart, predicting a rebound of one to four daily candlesticks for $BTC. If Bitcoin rebounds to $63,700, approximately $57.85 million will be liquidated across futures exchanges.

The market sentiment, however, is currently bearish. The Bitcoin “Fear and Greed” index has dropped to its lowest level in 18 months as Bitcoin declined below $60,000.

This sentiment shift coincides with significant moves by the German Government, which transferred 900 $BTC (approximately $54.75 million) in the past two hours. Out of this, 400 $BTC ($24.33 million) was transferred to major exchanges Kraken and Coinbase. Despite these transfers, the German Government still holds a substantial 46,359 $BTC (approximately $2.83 billion).

The Bitcoin ETFs Market Sees Net Outflows Of $175 Million

Additionally, the Bitcoin ETF market has seen a net outflow of $175 million as of June 24, 2024. This marks the seventh consecutive day of negative net inflows, the longest streak since May. Notably, no Bitcoin ETF had an inflow yesterday, with Grayscale (GBTC) experiencing the largest outflow. Despite the general trend, BlackRock’s Bitcoin ETF (IBIT) has maintained a non-negative net flow for the past seven days, bucking the trend seen in other major $BTC ETFs.

These mixed signals create a complex landscape for Bitcoin investors. On one hand, historical patterns and technical indicators suggest a potential rebound. On the other, market sentiment and significant outflows indicate caution. As always, investors should carefully consider these factors and stay informed about ongoing market developments.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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