Bitcoin most 'undervalued' since March 2023 at $20K, BTC price metric shows

💡 DMK Insight

Bitcoin’s MVRV ratio hitting three-year lows could signal a trend reversal, and here’s why that matters: The MVRV (Market Value to Realized Value) ratio is a crucial indicator for assessing whether Bitcoin is undervalued or overvalued. With BTC currently at $68,783.00, a rebound in this ratio suggests that many holders are now in profit, which could incentivize buying pressure. Historically, when the MVRV ratio dips this low, it often precedes significant price recoveries, making this a pivotal moment for traders. However, it’s worth noting that while this could indicate a bullish shift, market sentiment remains fragile, and external factors like regulatory news or macroeconomic shifts could still derail momentum. Traders should keep an eye on key resistance levels around $70,000. If BTC can break through and hold above this level, it could trigger further buying interest. Conversely, a failure to maintain upward momentum might lead to a retest of lower support levels. Watch for volume spikes and sentiment shifts in the coming days, as these could provide additional clues about the sustainability of any potential rally.