Altcoin
Experts predict a bullish rebound ahead
Bitcoin investors are worried as the cryptocurrency fell below $59,000, hitting a low of $58,601.70 after peaking at $61,790 in the last 24 hours. This 4.5% decline shows more bearish activity, with the Bitcoin fear index reaching 30, indicating that investors are more worried.
Bitcoin experiences a major correction
This cycle, Bitcoin has undergone another notable correction, marking its sixth significant decline. This recent decline it was one of the fastest and most intense, lasting 17 days, with a drop of almost 20%.
Prominent crypto trader Daan Crypto Trades highlighted this rapid correction, comparing it to similar events in the past. For context, Daan pointed to two other corrections of similar duration within this cycle. The first lasted 12 days after the Bitcoin ETF sell-off, during which Bitcoin fell 21% and lost nearly $10,670 from its price.
Another correction lasted 17 days, causing a 19.9% decline and a price drop of $6,191 after the bankruptcy of SVB, one of the largest banks by assets.
Technical signals for Bitcoin rebound
In this uncertain phase for Bitcoin, technical indicators suggest a glimmer of hope for a potential price recovery. According to analyst Ali Martinez, Bitcoin’s MVRV ratio has fallen below -8.40% four times since February 2023. This has triggered significant price increases of 63%, 100%, 92% and 28% on each occasion.
With BTC currently below $60,000 and the MVRV ratio at -8.96%, Ali sees this as a promising buying opportunity, anticipating future bullish moves. Furthermore, the TD Sequential indicator has launched a buy signal on the daily chart of Bitcoin, predicting a rebound that will extend from one to four daily candlesticks.
Echoing the bullish stance, another crypto analyst Axel Adler also pointed out the Short-Term Holders (STH) Output Profit Spent Ratio (SOPR), which recently stood just above 1 on its 90-day moving average (90DMA).
Historically, Bitcoin tends to correct until this metric drops below 1, signaling a possible trend reversal in favor of bullish momentum.