Is a bullish wave coming? Bitcoin Index Hits Lowest Level Since FTX Crash Crisis

Data from Santiment shows that Bitcoin’s MVRV index, which measures whether the currency is overvalued or undervalued, hit its lowest level since the collapse of the FTX platform in late 2022.

The company said that when the index reached similar negative levels following the FTX crash, Bitcoin’s price rose by approximately 67% in three months.

This typically occurs when investor returns are well below historical averages, which may indicate that an asset is in “undervalued” territory.

However, analysts warn that the current situation is different due to macroeconomic factors and discussions of accumulation strategies by some Bitcoin companies, which may change market dynamics.

For its part, Glassnode believes that Bitcoin is starting to show early signs of stabilization as ETF flows return and spot demand improves.

Currently, the price has been fluctuating between $63,000 and $72,500 for over a month.

The main market levels are located at $54,400 as support (the price reached) and $78,400 as the main resistance.

While there are some signs of improvement, such as increased ETF flows and reduced volatility in the options market, market sentiment remains weak and trading volumes are low, suggesting that a consolidation phase may continue ahead of any major price moves.

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