Bitcoin price has 'parachuted' in recent days, plunging into the $32,900s. CryptoQuant CEO, Ki-Young Ju shared his views on this matter based on existing market indicators: the lowest price in the market could possibly be lower than the current price.
The indicator is the ratio between Market Value and Realized Value (MVRV) which will usually indicate the lowest cycle.
At press time, the Bitcoin price is up $4,000s, from $33,000s to 37,200s.
At the moment, the market is defying many explanations and expectations as the support level fell than many analysts expected. New evidence now indicates that the metric could be showing Bitcoin's lowest price.
Ki-Young Ju also emphasized that the MVRV ratio can be used to signal the market's cycle lows. As of now where the MVRV ratio is at 1.50 and the overall Bitcoin wallet indication is still more than 50% including unrealized profits.
Given its history, when the metric falls below 1, it could be a sign of the lowest price in the market and at the same time lead the price trend back up. As Ki-Young Ju put it on his Twitter, “The MVRV is currently 1.50, which indicates the Bitcoin wallet still has +50% unrealized profit.
If it ends in a bull cycle, we should pay attention to this classic indicator to catch cycle lows. Historically, cycle lows came when MVRV fell below 1.”
Ju cautions that there is no perfect sign indicating the market's cycle lows when various percentages of wallets are losing. In general, CryptoQuant describes that meteic is very useful to find out whether the price is fair or not.
Even though the MVRV ratio is bearish, investors have not given up hope and have identified bullish signals.
Like Benjamin Cowen, a YouTuber, the fair value of Bitcoin is currently at $32,885. He did not say that BTC should reach this level. This is an indication of a logarithmic regression fit.
According to Cryptoharian, BTC must close above the 21 monthly EMA which is at $36,481 for BTC not to fall to $30,000. If BTC closes below this level, $30,000s is not the end goal, BTC could go to $25,000s.