Bitcoin, the largest cryptocurrency, has been the center of attention recently due to its price surge to $65k after falling to $54k. Adding to the excitement, Bitcoin’s NVT ratio has hit a historic low not seen in over 2.5 years.
Here’s what you should know.
Prominent crypto analyst Michael van de Poppe suggests that this could signal the end of Bitcoin’s recent downturn. The strong buying sentiment in the market is further indicated by Bitcoin’s RSI standing at 63.60.
In a recent tweet, van de Poppe highlighted a significant milestone in Bitcoin’s market performance: the NVT ratio dropping to its lowest point in the past two and a half years. The NVT ratio, which measures network value relative to transaction volume, has historically been a crucial indicator of Bitcoin’s market health.
Van de Poppe noted that this drop is particularly unusual, surpassing declines seen during major events like the Luna collapse or recent market corrections. However, a negative NVT ratio suggests a shift in market dynamics, with strong buying pressure compared to on-chain transaction volume.
Van de Poppe emphasized that this dip in the NVT ratio indicates the recent correction phase for Bitcoin may be ending. He urged investors to prepare for potential market movements, suggesting that the worst of the correction could be behind us.
A recent poll conducted on the Reddit Mt. Gox forum has shed light on the intentions of creditors once they receive compensation. Out of the participants, 55% (260 people) expressed their decision to retain their Bitcoin holdings rather than selling them.
Meanwhile, 18% (88 people) indicated their plan to liquidate all of their Bitcoin to gain profit. Another 15% (68 people) intend to sell between 1% to 25% of their holdings, while a smaller segment, 6% (26 people), plans to sell between 25% to 50%.
This poll highlights the diverse plans creditors have for their Bitcoin, with the majority favoring long-term holding.
Read Also: Bitcoin ETFs Surge for 9th Day: Analyst Predicts $100K BTC Price Target
What do you think? Is Bitcoin on the cusp of another bull run? Share your thoughts.
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