Bitcoin’s MVRV Ratio hints at ‘cyclical bottom’ forming below $110K

💡 DMK Insight

Bitcoin’s recent undervaluation signal could be the lifeline traders have been waiting for. With BTC entering this phase, we might see a local bottom forming around the $25,000 mark, which has historically acted as a support level. If we can hold above this threshold, a rebound could push prices back toward the $30,000 range in the short term. This is crucial for day traders looking to capitalize on volatility and swing traders aiming for a more sustained recovery. But here’s the flip side: if BTC fails to maintain this support, we could see a deeper dive, potentially testing the $22,000 level. Keep an eye on trading volumes and momentum indicators—if we see increased buying pressure, that could confirm a bullish reversal. Watch for any news or macroeconomic shifts that could impact sentiment, especially around inflation data or regulatory developments, as these can create ripple effects across the crypto market and influence correlated assets like Ethereum.