CryptoQuant CEO and Analyst Offers Bottom Analysis for Bitcoin (BTC)! Is the Bottom Near or Still Far Away According to the Data? Here’s the Answer

Just when the leading cryptocurrency Bitcoin seemed to be recovering, it experienced new declines. Yesterday evening, another drop occurred, pushing the price down to around $58,000.

With this price decline, Bitcoin’s market capitalization/realized value ratio (MVRV) also fell to 1.1.

Analyzing this situation, Crypto Dan from CryptoQuant noted that Bitcoin’s MVRV ratio, obtained by dividing its market capitalization by its realized market capitalization, has fallen to 1.1.

He also added that this ratio is the lowest level in the current cycle. The lower the MVRV ratio, the higher the probability that Bitcoin is undervalued.

The analyst noted that historically, an MVRV value below 1 signals that the market is approaching its bottom, citing 2015, 2019, 2020, and 2022 as examples.

According to the analyst, every move towards 1 or below in the MVRV ratio has coincided with a cyclical bottom and has often been the strongest accumulation signal, even during periods when most investors have suffered losses.

CryptoQuant CEO Ki Young Ju also stated that it is still unclear whether Bitcoin has reached the bottom of its cycle.

Ju also shared an on-chain data snapshot illustrating the potential gains and losses of buying Bitcoin at the current price. According to the data, the market has not yet reached the bottom where the risk-reward ratio peaks, as seen in past major bear markets. Based on this data, Ju emphasized that it remains unclear whether Bitcoin has reached the bottom of its cycle.

*This is not investment advice.

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