A popular crypto analyst is seeing signs that Bitcoin (BTC) could be hitting a bottom, similar to what happened in November 2022.
MVRV Ratio Suggests Oversold Bitcoin
The analyst, Ali Martinez, is looking at the Market Value to Realized Value (MVRV) ratio. This ratio compares Bitcoin’s current market value to the price at which all the coins were bought. When the MVRV is low, it means people are selling Bitcoin at a loss, suggesting the market is oversold.
Martinez says the MVRV ratio is currently at its lowest point since the FTX collapse in November 2022. He believes this could be a good buying opportunity, similar to the one that followed the FTX crash.
Bitcoin Needs to Hold $54,000
Martinez also uses the MVRV ratio to predict Bitcoin’s potential price movements. He says Bitcoin needs to stay above $54,000 to avoid dropping to $40,000. If it can hold that level, he believes it could rise to $67,000.
Solana Also Showing Signs of Recovery
Martinez is also optimistic about Solana (SOL). He believes the cryptocurrency is forming a “W” pattern, which is a bullish reversal signal. He predicts that if Solana stays above $125, it could rise to $142.
Disclaimer: This information is for educational purposes only and should not be considered investment advice. Always do your own research before making any investment decisions.
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