One of the most accurate indicators in the market, MVRV-Z, shows that Bitcoin (BTC) should continue to correct before starting an uptrend. According to data from Glassnode, Bitcoin’s MVRV-Z score is largely indicative of a price rebound.
A lot of data suggests that Bitcoin will easily move down from $17,600. Filbflib, co-founder of the Decentrader trading suite, noted that the MVRV-Z score is now in its classic green zone. This index is still at the same level as the previous falling trend of Bitcoin.
MVRV-Z Bitcoin Index Analysis
MVRV-Z measures how high and low the price of Bitcoin is relative to its fair value. In other words, MRVV-Z examines the Bitcoin bubble. The MVRV-Z indicator uses current market value and actual price data along with standard deviation to identify potential tops and bottoms for Bitcoin.
According to data from LookIntoBitcoin, the MVRV-Z indicator has correctly identified all Bitcoin tops and bottoms in the past with an accuracy of two weeks. This index has penetrated below the green zone several times in the past, the last time of which goes back to March 2020.
The price floor of Bitcoin will be 15600!
According to the MVRV-Z horn chart, we can see that 15,600 is likely to be the price floor of Bitcoin. The famous Twitter account CryptoBullet identified the most important areas of Bitcoin support. The $16,000 support is obtained by calculating the average deviation from Bitcoin’s 50-day moving average.
According to CryptoBullet, the $14,000 (2019 Echo Bubble Ceiling), $12,200 (Celsius Liquidity) and $10,700 (Critical Support Area) are other important supports for the largest cryptocurrency in the market.
The Bitcoin RSI indicator has reached its lowest level at the moment. The current RSI level indicates an oversold condition in the market. This index is now below the peak of the previous halving cycle of $20,000.
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Source: cointelegraph