Bitcoin Price Tumbles To $61,000: What Next For BTC?

Indeed,
the
Bitcoin
price
performance
has
been
one
of
the
high
points
in
the
crypto
landscape
in
recent
weeks.
However,
the
premier
cryptocurrency
has
not
exactly
made
a
dreamy
start
to
the
new
month,
sparking
conversations
about
the
coin’s
history
in
August.

Interestingly,
a
blockchain
firm
has
indicated
that
it
might
not
be
all
gloom
for
the
value
of
Bitcoin,
as
the
market
leader
might
experience
a
price
rebound
over
the
next
few
days.

Bitcoin
Price
Might
Be
At
A
Bottom
—
Here’s
What
Is
Next

Prominent
cryptocurrency
analytics
platform
Santiment
has
revealed
that
a
“relief
rally”
might
be
around
the
corner
for
the
price
of
BTC.
This
positive
projection
comes
after
what
has
been
a
sluggish
week
for
the
flagship
digital
asset
and
other
large-cap
cryptocurrencies.

Santiment’s
prediction
of
a
price
rebound
is
based
on
the
MVRV
(Market
Value
to
Realized
Value)
ratio
intraday,
which
measures
the
average
profit/loss
of
Bitcoin
holders
within
a
specific
day.
This
indicator
is
particularly
used
for
identifying
when
BTC
is
undervalued
or
overvalued. 

When
the
MVRV
ratio
is
above
0%,
it
implies
that
more
traders
are
in
a
profit.
Historically,
traders
have
shown
a
propensity
to
sell
off
their
assets
when
they
are
in
the
green.
Meanwhile,
an
MVRV
ratio
below
0%
signals
that
more
traders
are
in
loss
and
that
Bitcoin
is
likely
undervalued.

Bitcoin MVRV ratio falls below 0% | Source: Santiment/X

As
shown
in
the
chart
above,
the
MVRV
ratio
for
Bitcoin
is
currently
beneath
zero
at
-5.5%,
indicating
that
the
premier
cryptocurrency
might
currently
be
undervalued.
Typically,
low
MVRV
ratios
have
been
associated
with
an
opportunity
to
buy
at
the
price
bottom.

Moreover,
the
Bitcoin
price
has
historically
rallied
whenever
the
Market
Value
to
Realized
Value
ratio
has
fallen
to
the
current
levels.
On
July
4
and
July
25,
the
price
of
the
premier
cryptocurrency
jumped
by
7%
and
9%,
respectively,
when
the
MVRV
ratio
dipped
to
-5%.

In
the
post
on
X,
Santiment
highlighted
that
other
large-cap
crypto
assets
are
in
a
similar
position
as
Bitcoin.
These
cryptocurrencies,
including
ETH,
ADA,
XRP,
DOGE,
and
LINK,
have
the
potential
for
a
price
rebound
following
the
plunge
in
MVRV
ratio
intraday.

Bitcoin
Price
At
A
Glance

As
of
this
writing,
the
price
of
Bitcoin
stands
at
around
$61,300,
reflecting
a
more
than
5%
dip
in
the
past
day.
Meanwhile,
the
flagship
cryptocurrency
has
declined
in
value
by
almost
10%
in
the
last
week,
according
to
data
from
CoinGecko.

The Bitcoin price falls beneath the $62,000 level on the daily timeframe | Source: BTCUSDT chart on TradingView

Featured
image
from
iStock,
chart
from
TradingView