Will Bitcoin Drop One Last Time Before Rising? Altcoins Have Lightened Enough! - Coin Bulletin

Bitcoin (BTC) enters oversold territory after a major correction, while altcoins also suffered significant losses, raising the question of whether there will be one final drop before a new uptrend.

According to CryptoQuant analyst, Bitcoin (BTC) market entered the oversold zone after a major correction, which could create a suitable ground for a new upward movement. The analyst notes that there is enough easing in the market even without an additional sharp decline and there is a chance of recovery without a major drop.

It is observed that Bitcoin experienced two major selling waves in the year 2024. In March and December, the percentage of Bitcoins held for less than a month reached levels of 23% and 24.5% respectively. According to CryptoQuant analyst, there were sharp fluctuations in the Bitcoin price during these periods, followed by corrections cooling down the market. Currently, the MVRV ratio, a critical metric, has dropped to 1.8 levels, which is quite close to the 1.71 level seen during the correction period in 2024.

Is the market approaching a low point?

According to CryptoQuant analyst, if Bitcoin falls to the 70,000 dollar levels, the MVRV ratio could reach the 2024 correction bottom. However, investor sentiment is quite weak in the current market conditions and it is seen that the altcoin market has largely lost its gains. The analyst emphasizes that this situation indicates that most investors are unprofitable in this cycle.

However, being in the current oversold zone of the market may herald a potential upward movement. Even if an additional sharp decline does not occur in the market, a recovery for Bitcoin and altcoins may occur, as suitable conditions have formed for this.

Factors that investors need to pay attention to

According to CryptoQuant analyst, investors should carefully monitor first Bitcoin's recovery power and how long this process can last. In particular, the movements of (whales) and changes in on-chain data by major investors can provide important clues about the market direction. The analyst also says that global economic trends and the correlation between the stock market and Bitcoin should be closely watched.

The current oversold condition of the Bitcoin and altcoin market is creating a favorable environment for price recovery. According to CryptoQuant analyst, it is still early to say whether the market has fully entered a bear cycle. Monitoring price movements and major investor behaviors in the coming days will be critical.