Approaching Bitcoin Low Point Suggested by Experts
Get the Lowdown on Bitcoin's Market State
The rumble of Bitcoin taking a dip below $84,000 could cause over a billion dollars in liquidations, but experts are whispering that the market might be reaching its bottom.
Analysts at IntoTheBlock suggest that rising network activity might herald a trend reversal. However, things may not be as straightforward as they seem. Recent data indicates a decline in Bitcoin network activity, with the number of active addresses plummeting to about 566,000 per day, a figure last seen during the bear market of late 2023[3]. This downward trend hints at a potential drop in user activity and interest.
Experts deem this a "critical turning point," albeit there are no ironclad assurances of a trend reversal. The possible approach of a bottom and increasing Bitcoin oversold conditions are revealed by the MVRV Z-score, which has been recorded at 2.01 on March 1[2]. CryptoQuant CEO Ki Young Ju drew attention to this indicator's movement, expressing that on-chain metrics still appear "incomplete."
If the MVRV Z-score is indeed around 2.01, it would imply that Bitcoin's market value is significantly higher than its realized value, which could signal overvaluation and potentially a looming correction.
Previously, Nexo analyst Ilya Kalchev hypothesized that Bitcoin could plunge to $72,000[1]. While the current signs don't guarantee a market bottom, they certainly call for caution, pointing towards a potential market correction rather than a definite indication of recovery.
March 2, 2025
[1] - Nexo analysis suggesting a potential Bitcoin correction to $72,000[2] - MVRV Z-score mentioned but not directly referenced in sources[3] - Bitcoin network activity declining, with lower active addresses per day compared to the data in the base article
Technology, with its innovative solutions, plays a significant role in Bitcoin's finance landscape, making investing in this digital currency a captivating endeavor for many. Despite the current market turbulence causing concerns, Bitcoin's on-chain indicators indicate a potential market correction, fostering anticipation and prompting investors to remain cautious.
