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Cryptocurrency News Articles
Bitcoin (BTC) Flashes a Buy Signal Amid Market Decline, But Risks Remain
Oct 04, 2024 at 02:00 am
Amid the general market decline, 97,602 traders have liquidated in the past 24 hours, with the combined liquidation value reaching $274.73 million.
As the broader crypto market experiences a downturn, with over 97,000 traders liquidated within 24 hours, Bitcoin's price has slipped by 1% amid decreasing trading volume.
However, a crucial on-chain metric has signaled a potential buying opportunity for contrarian BTC traders, despite the market facing potential downside risks.
Bitcoin's market value to realized value (MVRV) ratio, which showcases the overall profitability of all its holders, serves as the on-chain metric of interest. At the time of writing, the coin's 30-day and 90-day MVRV ratios stand at -0.89 and -1.48, respectively.
Typically, a negative MVRV indicates that the current market price is below the average price at which most investors acquired the asset. Hence, if all holders were to sell their coins at the present market price, they would collectively incur a loss.
However, the metric also offers some solace, as historically, negative MVRV ratios present a buying signal, suggesting that the market is oversold and might be presenting an opportunity to buy. A negative MVRV shows that the asset is being sold for less than the average acquisition cost, indicating that the asset might be due for a rebound.
This buying signal has prompted some traders to accumulate the leading coin, with an unprecedented level of new whale activity being observed.
“Look at how fiercely the new whales are stacking Bitcoin; this market has never seen this level of accumulation,” Ki Young Ju, the founder of CryptoQuant, stated in a post on X.
Despite this buying signal, it is crucial to note that the risk of further decline in the market is still present, with buying pressure continuing to decrease, evident in BTC's falling Relative Strength Index (RSI), which is currently at 44.88.
The RSI is a key indicator of overbought or oversold market conditions. At its current level, this indicator showcases that selling activity is outpacing buying pressure among BTC holders.
BTC Price Prediction: Key Support Levels to Hold for Further Price Decrease
If selling pressure intensifies, Bitcoin could approach the critical support level at $58,518. A failure by bulls to defend this price may trigger a further drop, with the next support target being at $54,899.
However, if market sentiment shifts from bearish to bullish, Bitcoin may reverse its trajectory, invalidating the bearish outlook. In this case, BTC could rally toward $64,367 in the near term.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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- Bitcoin (BTC) Price Drops Below $61,000 as Geopolitical Tensions Intensify
- Oct 04, 2024 at 07:05 am
- The latest sell-off, triggered by geopolitical tensions in the Middle East, has seen the price lose key support levels: the 50-day exponential moving average (EMA) at $61,318 and the 100-day EMA at $61,438.
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- Bitcoin Climbed Past $61,400 on Wednesday After Taking a Major Tumble Amid Escalating Conflict in the Middle East, Dampening Expectations for an October Rally
- Oct 04, 2024 at 06:45 am
- Prominent Bitcoin analyst Willy Woo said that Bitcoin's current market structure indicated bearishness in the mid-term.
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- Bitcoin (BTC) Value Motion Faces a Range of Influences, How Will the Escalating Geopolitical Tensions in the Middle-East Affect Bitcoin?
- Oct 04, 2024 at 06:40 am
- Bitcoin's [BTC] value motion has had a wide range of influences over time. From financial influences to geopolitical publicity, however may the escalating geopolitical outcomes within the Center-East affect Bitcoin?