- Bitcoin falls below $59,000, hitting an eight-week low at $58,601.70.
- Mt. Gox plans to start repaying creditors in BTC and BCH in 2024.
- Analysts suggest potential Bitcoin bullish turnaround based on technical indicators.
Bitcoin
The downward trend has been noticeable since the previous week, with a 7% decrease, propelling Bitcoin into its most bearish condition, as evidenced by a Fear Index score of 30. This downturn has been marked by increased selling activity, with the daily Relative Strength Index (RSI) standing at 29.
In other news, Mt. Gox has declared its intention to begin compensating its creditors with Bitcoin (BTC) and Bitcoin Cash
Is a Bitcoin Bullish Rebound on the Horizon?
As optimism for a resurgence in Bitcoin’s bullish trend wanes, certain technical indicators on the charts suggest a somewhat different narrative.
Renowned analyst Ali observed that on four separate instances since February 2023, the Bitcoin MVRV Ratio has fallen below -8.40%. Following each of these instances, there were notable surges in Bitcoin’s price, with increases of 63%, 100%, 92%, and 28%. With Bitcoin’s current price below $60,000 and the MVRV Ratio at -8.96%, he suggests that this could be an opportune moment for purchasing Bitcoin, anticipating a positive trend ahead.
Additionally, the TD Sequential indicator shows a buy signal on Bitcoin’s daily chart, which could indicate a potential increase spanning one to four daily candlesticks for Bitcoin.
Crypto analyst Axel Adler also pointed out the significance of the short-term holders’ (STH) spent output profit ratio (SOPR) indicator. Its 90-day moving average (90DMA) was just over 1 at the reporting time. When drawing parallels with the 2016 cycle, it’s possible that Bitcoin may extend its downward correction until this indicator dips below the threshold. At that point, a shift in trend favoring a bullish rally could become more probable.
Therefore, Bitcoin enthusiasts need to maintain the current momentum. The next key target is the $66,477 level, which, if the positive trajectory persists, could reach $68,468. Conversely, should the bearish pressure intensify, Bitcoin’s price could retract to $56,569.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
