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The price of Bitcoin (BTC) is currently trading at $75,500 due to volatility in the riskier asset market.
The price move follows a volatile week amid growing tensions between the United States and Iran, as the collapse of talks over the weekend reflected investors’ risk appetite.
Amid these swings, recent on-chain data shows that Bitcoin is currently testing what analysts say is a major historically critical area that could reshape the character of the next phase.
Collection scope:
According to a recent report from CryptoQuant, the Bitcoin Composite Market Index (BCMI) is approaching important historical support levels after falling into the 0.2 – 0.3 range, a range that has previously been associated with periods of significant undervaluation of Bitcoin, but does not necessarily mean an immediate rebound.
This indicator combines multiple readings from online data and sentiment indicators, including:
- MVRV (ratio of market value to realized value)
- national public library (Unrealized net profit or loss)
- excellent (profit as a percentage of output)
- fear and greed index
Current data suggests that the recent correction has reassessed market and investor sentiment, reaching levels not seen since early 2023.
In contrast, the 90-day moving average is still in a downtrend, which means the selling pressure has not completely dissipated.
Analyst recommendation”Crypto quantization“We are waiting for this trend to stabilize before asserting that the selling wave has run out, noting that current data suggests that downside risk is relatively low compared to long-term potential returns, keeping the market in a value accumulation phase.
Analyst Ali Martinez said that most Bitcoin traders are now betting on an upward trend, explaining that the recent upward wave resulted in the liquidation of short positions worth approximately $80 million.
As these positions were liquidated, the market gradually turned towards buying, with long positions condensing at the following levels:
- $70,000
- $65,000
- $57,000
Martinez believes these levels may act as liquidity magnets, able to liquidate late-stage leverage and reset the market ahead of subsequent rallies.
On the other hand, early Bitcoin investor and social media activist Da Vinci Jeremy warned that despite the recent rebound, the market may not have reached the bottom of the current cycle.
Jeremy’s warning is based on similarities between the recent dip below the $60,000 level and the downward wave experienced by the market in June 2022, suggesting that the “maximum pain” is still ahead, with a possible new wave of capitulation before reaching a final bottom – a situation he compared to the collapse of the FTX platform, which temporarily pushed Bitcoin below $16,000.
Also read:
BlackRock pumps $500 million into Bitcoin as institutional optimism returns
Bitcoin Price at a Crossroads: Decisive Breakout or Return to Fall?
