Bitcoin Plunges to $61,000 – What’s in Store for BTC?
Indeed, the Bitcoin price performance has been one of the high points in the crypto landscape in recent weeks. However, the premier cryptocurrency has not exactly made a dreamy start to the new month, sparking conversations about the coin’s history in August.
Interestingly, a blockchain firm has indicated that it might not be all gloom for the value of Bitcoin, as the market leader might experience a price rebound over the next few days.
Bitcoin Price Might Be At A Bottom — Here’s What Is Next
Prominent cryptocurrency analytics platform Santiment has revealed that a “relief rally” might be around the corner for the price of BTC. This positive projection comes after what has been a sluggish week for the flagship digital asset and other large-cap cryptocurrencies.
Santiment’s prediction of a price rebound is based on the MVRV (Market Value to Realized Value) ratio intraday, which measures the average profit/loss of Bitcoin holders within a specific day. This indicator is particularly used for identifying when BTC is undervalued or overvalued.
When the MVRV ratio is above 0%, it implies that more traders are in a profit. Historically, traders have shown a propensity to sell off their assets when they are in the green. Meanwhile, an MVRV ratio below 0% signals that more traders are in loss and that Bitcoin is likely undervalued.
As shown in the chart above, the MVRV ratio for Bitcoin is currently beneath zero at -5.5%, indicating that the premier cryptocurrency might currently be undervalued. Typically, low MVRV ratios have been associated with an opportunity to buy at the price bottom.
Moreover, the Bitcoin price has historically rallied whenever the Market Value to Realized Value ratio has fallen to the current levels. On July 4 and July 25, the price of the premier cryptocurrency jumped by 7% and 9%, respectively, when the MVRV ratio dipped to -5%.
In the post on X, Santiment highlighted that other large-cap crypto assets are in a similar position as Bitcoin. These cryptocurrencies, including ETH, ADA, XRP, DOGE, and LINK, have the potential for a price rebound following the plunge in MVRV ratio intraday.
Bitcoin Price At A Glance
As of this writing, the price of Bitcoin stands at around $61,300, reflecting a more than 5% dip in the past day. Meanwhile, the flagship cryptocurrency has declined in value by almost 10% in the last week, according to data from CoinGecko.
The Bitcoin price falls beneath the $62,000 level on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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