A closely followed crypto analyst says that one key indicator is flashing a similar bottom signal for Bitcoin (BTC) as it did in November 2022.
In a new strategy session, crypto trader Ali Martinez tells his 68,900 followers on the social media platform X that Bitcoin’s Market Value to Realized Value (MVRV) is the lowest since after the FTX crypto exchange collapse.
The MVRV is the ratio of a crypto asset’s market capitalization relative to its realized capitalization or the value of all the coins at the price they were bought. When the MVRV value drops below zero, it indicates that the asset is oversold as traders who bought it at a certain time frame are witnessing losses.
“The Bitcoin MVRV ratio (30-day) hasn’t been this low since November 2022, right after the FTX collapse. That period marked a bottom and an excellent buying opportunity.”
The analyst also says that pricing bands derived from the MVRV ratio indicate Bitcoin needs to hold $54,000 as support in order to mount a rally to $67,000.
“Based on the Bitcoin MVRV pricing bands, BTC needs to reclaim $54,000 as support to prevent a drop to $40,000. If the $54,000 support holds, the key resistance on the upside for BTC is $67,000!”
Bitcoin is trading for $56,448 at time of writing, up more than 3% in the last 24 hours.
The analyst also accurately predicted a Solana (SOL) recovery to the $140 range based on the formation of a W pattern, a bullish reversal indicator used by technical analysts.
“Solana appears to form a ‘W’ pattern on the lower time frames. A sustained close above $125 could see SOL rebound to $142. I’m placing my stop-loss at $117!”
Solana is trading for $147 at time of writing, up nearly 12% in the last 24 hours.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The…
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