Bitcoin is currently facing a wave of selling pressure as bearish sentiment takes hold in the market. The recent announcement of Mt. Gox’s plan to repay creditors has added to the cautious atmosphere.
The bears have caused Bitcoin to drop below $59,000, with a 3% fall in the past day to an eight-week low of $58,601.70 after reaching a 24-hour high of $62,900.
This recent drop has led to the most bearish state for Bitcoin, with the Fear Index hitting 30, and the daily RSI dropping to 29. The selling pressure has been significant, with a 7% decrease over the past week.
In the midst of this, Mt. Gox’s announcement that it will begin repaying creditors in BTC and BCH in early July 2024 has been met with negativity from the market.
Despite the current pessimism, some technical chart indicators offer a glimmer of hope for a potential bullish rebound. Analyst Ali pointed out that the Bitcoin MVRV Ratio has previously dropped below -8.40% on four occasions since February 2023, leading to significant price jumps each time. With the current MVRV Ratio at -8.96%, there is speculation that now might be an ideal time to buy the dip and anticipate a bullish future.
Additionally, the TD Sequential is showing a buy signal on the Bitcoin daily chart, predicting a potential rebound in the near future. Analyst Axel Adler also highlighted the short-term holders’ spent output profit ratio (SOPR) metric, suggesting that Bitcoin could continue its correction until this metric falls below the 90-day moving average.
For Bitcoin bulls, maintaining momentum is crucial. The next significant milestones lie at the $66,477 and $68,468 marks if the upward trend continues, while a drop to $56,569 is possible if the bears gain further control.
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