Will Bitcoin Drop to 40K?
Bitcoin has recently surged from 52k to 64k in just 2 days. We have only seen green candles in Bitcoin in the last few days. But many people are calling for a big correction, like 40k-35k. Many cryptocurrency experts are tweeting and writing articles on “How Bitcoin Will Eventually Fall Below 40k or Less.” Let’s find out how realistic the claims are.
1. Extreme greed in the market
When Bitcoin broke the psychological level of 50,000, the only way to enter the market was with extreme greed. The latest index shows 82, which indicates extreme greed. Many indicators show that most coins, including BTC, are overbought, and the buying pressure is growing more and more. And people are cautious about this.
2. MVRV coefficient
MVRV stands for Market Value to Realized Value. It is the ratio between the current price of an asset and its selling price. MVRV is calculated by dividing the market capitalization of the asset by its realized capitalization.
The MVRV ratio is a great source of data for identifying corrections and tops in Bitcoin. The MVRV ratio confirmed the bottom of Bitcoin when it reached below 0.70, and now it is approaching 2.50, which is a bullish momentum. Historical forecast has shown that Bitcoin is likely to peak when the MVRV ratio exceeds 3.
3. Support/resistance zone
Before believing any statement, it is best to double check the statements and facts. Bitcoin has clearly broken out of the 54,000 area and is now at 64,000. The next ATH is only 13% away. And the next Big Support is 15% away.
If Bitcoin drops 20% from here (which is a big reset in itself), Bitcoin will still be hovering around 48-49k. We believe a correction could happen at any time since retail has not yet entered the market and money is flowing into memecoins, which are the last liquidity.
4. Chasing the Bitcoin Dream
As the#Bitcoinspot price reached $57,000, we note that only 82/4972 (1.65%) trading days recorded a higher daily closing price.
🔆 What to do?
USDT.D continues its bearish move after breaking out of the symmetrical triangle. It has now successfully broken through the MA 200. The MACD crossover indicates bearish momentum.
The downward movement is expected to continue, and it is important to note that it works inversely to the crypto market. Which is good for altcoins.
Just grow your profits, invest in your winners, keep growing your long term position. And Cold 😎. Bitcoin is clearly dumping from here or the 66-65k area, we need to be careful ⚠️
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