Analyst Warns: Bitcoin May Fall Up to 50 Thousand Dollars According to This Indicator - Koin Bulletin

According to a cryptocurrency analyst, Bitcoin's realized market value indicates that a severe correction in price may occur.

A CryptoQuant analyst evaluated Bitcoin's current situation with its past performance using the indicator known as MVRV.

MVRV is obtained by dividing the market value of an asset by its realized market value and can give clues about how fair the current price of that asset is. In this indicator, going above the 3.7 level can indicate that the market has reached a peak, while falling below the 1 level can indicate that the market has reached a bottom.

Stating that MVRV is currently at 2.23, the analyst pointed out that this is twice the average purchase price at the blockchain level.

“The transition from the recovery process compared to past cycles to the process where the main part of the game begins when MVRV reaches the median of the Bollinger Bands or the average level of the four-year cycle.” said the analyst, adding that a 20% correction can be seen under current conditions.

The analyst, who warned investors that the Bitcoin price could drop to approximately 50 thousand dollars, said: "This is not a prophecy about what will happen, it is just a preparation for what may happen." he said.