A leading analytics firm, Santiment, has highlighted a potential bullish signal for Bitcoin (BTC) based on its Market Value to Realized Value (MVRV) ratios. The MVRV ratio compares a crypto asset’s market capitalization to its realized capitalization, indicating oversold conditions when it drops below zero.
Santiment is closely monitoring Bitcoin’s 30-day and 365-day MVRV, noting that both have entered negative territory. The last time this occurred was in March 2023, just before Bitcoin embarked on a significant rally from $20,000 to $74,000.
According to Santiment, the decrease in the number of non-empty Bitcoin wallets by 566,000 since June 15th suggests that many holders have sold their BTC in fear of losses. However, this could be seen as a positive sign for patient bulls, indicating a potential bottoming out of the market sentiment.
Furthermore, crowd sentiment for Bitcoin is currently at a one-year low, increasing the likelihood of a rebound. When sentiment among traders on various platforms shows extreme fear, there is a greater chance of a surprise uptrend.
As of the latest update, Bitcoin is trading at $57,881. Investors are advised to stay informed and cautious when considering high-risk investments in Bitcoin and cryptocurrency. It is important to conduct thorough research and due diligence before making any investment decisions.