According to Cryptoquant, the crypto currency market is currently over -selling after a strong correction. Bitcoin assets for less than a month have reached 23 %and 24 %, respectively in March and December 2024, respectively. This model was accompanied by a market correction of Bitcoin’s market value (MVRV) to 1.8. This figure is very close to 1.71, the lowest level of 2024.
Bitcoin is preparing to recover?
Analysts say that if Bitcoin’s value decreases to $ 70,000, the MVRV ratio will reflect the levels seen at the lowest point of the correction. However, weakening market sensitivity caused most of the last gains of subcoins to give up most of them. It also left most of the investors in this cycle. This tendency shows that the market is currently experiencing significant lightening in investor positions and thus creates conditions suitable for recovery without the need for sharper decreases.
At the moment, the market is in the final stage of a upward cycle, in which increasing risk and challenging investment conditions are marked. However, with the evidence of the over -selling situation, the likelihood of the market is increasing. In his report in the Cryptoquant, the market pointed out that the current situation is an upcoming recovery, while it was early to confirm the beginning of a constant bear market. In this context, the analytical company made the following statement:
It is very important to monitor the following factors: the power and size of recovery; Whale movements during recovery and changes in On-Chain data; Correlation with stock market and economic trends.
Bitcoin’s expanding user base gives signal!
Despite the intense fluctuation in the market, a certain part of Bitcoin Holders began to accumulate. In addition, the total number of Bitcoin Holder, defined as non -empty wallets, has exceeded 54.71 million, and now approaching 54.72 million, the highest level of all times recorded on January 19 this year. This is only 0.018 %away from the summit.
This increase was mainly due to two basic factors: network growth and dividing larger wallets into smaller ones. After Bitcoin reached the highest level of all time with $ 109,000 in January, he experienced excessive price fluctuations for about eight weeks. However, the expanding user base showed itself in the midst of the latest market turbulence.
