Bitcoin investors are worried as the cryptocurrency dropped below $59,000, hitting a low of $58,601.70 after peaking at $61,790 in the last 24 hours. This 4.5% drop shows more bearish activity, with Bitcoin’s Fear Index reaching 30, indicating investors are more concerned.
Bitcoin Experiences Major Correction
In this cycle, Bitcoin has undergone another notable correction, marking its sixth significant drop. This recent decline was one of the fastest and sharpest yet, which lasted for 17 days dropping by almost 20%.
Prominent crypto trader Daan Crypto Trades has highlighted this rapid correction, comparing it with similar past occurrences. To provide context, Daan pointed to two other corrections of similar duration within this cycle. The first lasted 12 days following the Bitcoin ETF sell-off, during which Bitcoin fell by 21% and almost lost $10,670 from its price.
Another correction lasted 17 days, resulting in a 19.9% drop and a price decrease of $6,191 after the failure of SVB, one of the largest banks by assets.
Technical Signals for Bitcoin’s Rebound
In this uncertain phase for Bitcoin, technical indicators suggest a glimmer of hope for potential price recovery. According to analyst Ali Martinez, Bitcoin’s MVRV Ratio has dropped below -8.40% four times since February 2023. This triggered significant price jumps of 63%, 100%, 92%, and 28% on each occasion.
With BTC currently below $60,000 and the MVRV Ratio at -8.96%, Ali sees this as a promising buying opportunity, anticipating bullish movements ahead. Additionally, the TD Sequential indicator has flashed a buy signal on Bitcoin’s daily chart, forecasting a rebound spanning one to four daily candlesticks.
Echoing the bullish stance, another crypto analyst Axel Adler also pointed out the Short-Term Holders’ (STH) spent output profit ratio (SOPR), which stood just above 1 recently on its 90-day moving average (90DMA).
Historically, Bitcoin tends to correct until this metric dips below 1, signaling a possible turnaround favoring bullish momentum.
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