Bitcoin prices continue to fall as the cryptocurrency market corrects after hitting recent all-time highs.
This has sparked a new debate among investors. “Is now the ideal time to buy on the dip, or is there still potential for further downside pressure?”
Bitcoin is falling, but an opportunity has arrived
Bitcoin exchange balances have fallen to their lowest in six years and four months, indicating that investors are accumulating more. Approximately 45,000 BTC (worth over $4.81 billion) has been withdrawn from exchanges since the beginning of October.
These consistent outflows reflect investors’ belief that falling prices present a buying opportunity amid heightened market uncertainty.
This buy-on-the-spot sentiment has become even stronger as long-term holders accumulate assets at a steady pace. Historically, a decline in exchange balances correlates with a decrease in selling pressure and often precedes a stabilization or recovery phase in the market.
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Bitcoin’s 30-day market value-to-realized value (MVRV) ratio is currently -7.56%, indicating that investors who purchased within the past month have an unrealized loss of approximately 7.5%.
While negative MVRV values often indicate short-term pain, they have historically proven to be an attractive entry zone for long-term investors.
MVRV’s fall into the “opportunity zone” suggests that Bitcoin could witness a trend reversal soon if accumulation strengthens. Each instance in the past when this indicator entered negative territory was followed by a notable rebound.
Aiming for a rise in BTC price
At the time of writing, Bitcoin is trading at $106,947, below the key level $108,000 that previously served as strong support. The losses increased volatility across the market, but a rebound remains possible if the buying momentum holds.
If accumulation continues and investor sentiment strengthens, Bitcoin could regain $108,000. This will push the price closer to $110,000, which could expand to $112,500 if momentum gains further. Such a move would signal renewed confidence in the market.
On the other hand, if current levels cannot be sustained, it could lead to further declines. A break below $105,000 will put Bitcoin under further selling pressure. This could push the price towards $101,477, invalidating the near-term bullish outlook.
Bitcoin exchange supply drops to the lowest level in six years – signal for buy-in? The post appeared first on BeInCrypto.
