Bitcoin is undergoing a correction after a surge in short-term holdings, with its MVRV ratio nearing 2024 correction lows. Market participants are keeping an eye on potential rebound signals amidst weak sentiment.
Market Sentiment and Oversold Conditions
Bitcoin and altcoins are currently in an oversold state, reducing selling pressure. This condition increases the likelihood of a rebound, especially if Bitcoin holds critical support levels.
Signs of a Bullish Divergence
Despite recent declines, Bitcoin is showing early signs of bullish divergence. Breaking above its descending trendline signals a potential momentum change, which could strengthen bullish momentum. Following recovery from oversold levels, the RSI establishes an upward trendline.
Whale Activity and Macro Trends
There is an increase in whale activity, which may indicate a shift in dynamics. However, the market remains attentive to global trends influencing future price movements.
A potential rebound for Bitcoin is observed amid weak sentiment and oversold conditions. Investors are focusing on key indicators that might signal a trend reversal.
