CryptoQuant Analyst Reveals! "This Data is Promising for Bitcoin!" So, Has the Drop Ended?

Bitcoin (BTC) has been in a downward trend for weeks, with analysts divided on what comes next.

While some analysts expect the decline to continue and drop to $70,000, some analysts think that Bitcoin has reached its bottom.

At this point, the CryptoQuant analyst, who evaluates Bitcoin's movements, argued that Bitcoin could recover without further sharp declines.

The analyst who indicated that Bitcoin entered the oversold zone after the recent correction said that the Bitcoin MVRV ratio dropped to 1.8 level and approached the lowest level of 2024, which is 1.71.

According to the analyst, if BTC falls to 70,000, the MVRV ratio could reach last year's lows.

However, the analyst said that due to the already significant weakening of market sensitivity, the decrease in selling of (whales) in the market, and BTC being in the oversold territory, BTC could potentially experience a sharp recovery without further significant decline.

As an analyst, it is still too early to conclude that BTC has entered a full-fledged bear market in response to questions about whether the bear market has started, despite the weak market sensitivity.

The MVRV ratio, an important metric for evaluating the price of Bitcoin, dropped to 1.8 and approached the 2024 correction low of 1.71. If Bitcoin falls to the $70,000 range, the MVRV ratio could reach a level similar to the base of the 2024 correction.

*However, market sensitivity is currently significantly weakened and altcoins have delivered most of their gains, leaving the majority of investors unprofitable in this cycle. This shows that the market has already sufficiently lightened, and has become an appropriate region for a potential upward movement without the need for further significant decline, even without an additional sharp drop.

*Currently, the market is experiencing a strong correction that increases both the risk and the difficulty of investment in the final stage of the upward cycle. At this point, when the market enters oversold conditions, the probability of a recovery also increases. Despite the existing stagnation, most cryptocurrencies, including Bitcoin, are in oversold territory, indicating that a recovery is not far away.