Cryptocurrency market has experienced a broad retracement, leading traders to speculate about Bitcoin’s potential dip below the $50,000 mark. As per Santiment, a top analytic firm a relief rally is on the horizon.
This possibility was drafted based on the 7-day average. Usually, traders would return for leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), XRP, Dogecoin (DOGE), and Chainlink (LINK) at times of turmoil. Typically, when returns are low, the chances of a market bounce increase. This is where the 7-day Market Value to Realized Value (MVRV) ratio becomes crucial, as it helps analyze these trends.
Bitcoin recently experienced a 10.7% decline over four days, which indicates a possible recovery. On July 4th, Bitcoin saw a 7% rebound after a dip in its MVRV ratio. Later in the month, on July 25th, another similar pattern resulted in a 9% increase in Bitcoin’s price.
These historical patterns suggest that the current market situation, as of August 2nd, aligns with past MVRV lows. This could indicate a potential rebound for Bitcoin and other major cryptocurrencies, including ETH, ADA, XRP, DOGE, and LINK.
As of press time, Bitcoin was priced at $61,628.76, with a 24-hour trading volume of $44,990,002,150. Despite this high volume, Bitcoin has fallen by 3.79% in the past 24 hours. Similarly, Ethereum was trading at $2,971.46, with a 24-hour trading volume of $22,526,777,598, reflecting a 5.49% decrease.
Cardano’s price stood at $0.368990, experiencing a 2.94% drop with a trading volume of $395,499,513. Meanwhile, XRP was trading at $0.573024, with minimal movement, down by only 0.09%, and a trading volume of $1,926,786,291.
Dogecoin’s price was $0.113134, experiencing a 2.51% decline, with a trading volume of $898,618,226. Lastly, Chainlink was priced at $12.02, showing a 4.51% decrease and a trading volume of $320,246,634.
