Will BTC Price Plunge Further or Rebound Strongly?
Bitcoin’s price is experiencing bearish corrections ahead of the U.S. inflation report. This decline is caused by a significant sell-off among investors, creating huge bearish pressure between $95K-$100,000. Meanwhile, as traders on both sides continue to seriously affect the price list, various on-chain indicators indicate emotional confusion about the next direction of Bitcoin.
Bitcoin’s MVRV ratio has dropped
Binance, the world’s leading cryptocurrency exchange, sells nearly all of its Bitcoin, Ether, Solana and other cryptocurrencies, appears to increase market instability. As a result, Bitcoin is currently facing difficulties, fluctuating around the $98,000 level, with a recent correction of $95,000.
According to Coinglass, the total liquidation of Bitcoin soared to $32.21 million, with buyers facing liquidation of about $23.7 million and sellers about $8.41 million.
In addition, intotheblock data shows that Bitcoin’s MVRV ratio has declined as prices rise over the past 72 hours. The ratio dropped from 2.35 to 2.22, while Bitcoin pushed to $99,000.
A decline in the MVRV ratio during price increases usually indicates that long-term holders are making profits. These holders are aware of their gains by selling Bitcoins they previously bought at a lower price. This is one of the reasons behind the current bearishness.
In addition, Bitcoin’s volatility has dropped sharply from 38.12% to 33.52%. Now, this decline in volatility can stabilize the price of Bitcoin within a certain range. However, there are signs that Bitcoin may be ready for the upcoming potential breakthrough.
Several analysts believe the current downturn is an opportunity to buy Bitcoin at a lower price. If Bitcoin reaches immersion, purchases may increase and potentially establish a solid level of support. This may lead to a significant upward correction of Bitcoin.
What is the next step in BTC price?
Bitcoin’s price has recently tried to exceed $9.8K, but has since been merged and now shows a bearish trend as it strives to surpass the 23.6% Fibonacci resuming. As bearish rule rises, the price of Bitcoin is targeting holdings below $95K. Currently, Bitcoin is priced at $95,027, down 3% in the past 24 hours.
The BTC/USDT pair faces continuous sales pressure as it falls below the critical upward support line. Since the current price is now below that trend line, Bitcoin may soon retest key support levels for $91,000. Staying above this threshold could benefit buyers, potentially pushing the price to $98,000 or even $102,000.
Conversely, if Bitcoin continues to trade below the EMA20 trendline on the 1-hour chart, there may be pressure to drop, which may put the price below $89K.
