The world’s largest cryptocurrency, Bitcoin, with a market capitalization exceeding $1.7 trillion, has been consistently experiencing a bullish move. Recently, a prominent trader and analyst shared data on X (formerly Twitter), regarding the potential Bitcoin price correction. On March 5, 2024, a trader and analyst named Ali posted on X, highlighting that the MVRV ratio on the Bitcoin chart had reached its 19.57% level, suggesting a possible correction in the coming days.
#Bitcoin MVRV indicator is at 19.57% right now! Since February 2021, each time it crossed the 18% threshold, $BTC price plunged by 24% to 55%. Traders should monitor this trend as it anticipates a steep price correction! pic.twitter.com/kj3ysZPC46
— Ali (@ali_charts) March 5, 2024
Will Bitcoin Price fall?
According to the post on X, when the MVRV ratio surpasses the 19% level, there is a possibility that the asset’s price may experience a correction ranging between 24% and 55%. However, since February 2021, each time the MVRV ratio on the Bitcoin chart reached within these levels, Bitcoin experienced a price correction.
As MVRV is a technical indicator, it operates with greater accuracy based on market sentiment. However, the current sentiment is bullish, and Bitcoin is also nearing its all-time high. According to historical data and an analysis of all these factors, there is a very low possibility that Bitcoin will experience a price correction at this time.
Bitcoin technical analysis and key levels
According to expert technical analysis, Bitcoin is exhibiting bullish behavior, as evidenced by its daily time frame. The daily candle has successfully broken out and closed above the major resistance level of $66,500. This breakout appears robust, considering that Bitcoin’s price had consolidated for three days before the breakout. Furthermore, comparing this consolidation breakout with the previous one on February 26, 2024, suggests that Bitcoin may surge by more than 15% in the coming days.
Source: TradingView
In this context, the upcoming daily time frame for Bitcoin candle closing assumes a crucial role. If Bitcoin’s daily candle closes above the $69,000 level in the coming days, there is a possibility of witnessing a new all-time high.
Presently, Bitcoin is trading near the $67,000 level, and in the last 24 hours, it has experienced a price surge of over 2.8%. Examining Bitcoin’s performance over a more extended period, in the last 7 days, its price has surged by over 19%, while in the last 30 days, it has experienced a price surge of over 55%.
