The cryptocurrency market is currently in an oversold state following a recent correction, creating opportunities for a rebound. This context examines investor behavior and the expanding user base of Bitcoin.
Rebound Opportunity
Analysts indicate that if Bitcoin's value declines further to the $70,000 range, the MVRV ratio would approach the correction's lowest points. Decreased market sentiment has caused altcoins to lose most of their recent gains, leaving a majority of investors without profits this cycle. This creates conditions for a potential rebound without further sharp declines.
Bitcoin's Expanding User Base Signals
Certain cohorts of Bitcoin holders have started accumulating despite the market's volatility. The total number of Bitcoin holders, defined as non-empty wallets, has surpassed 54.71 million and is nearing its all-time high of 54.72 million set on January 19th, 2024, driven by network growth and splitting larger wallets into smaller ones.
Factors to Monitor
Experts advise closely monitoring the strength and magnitude of the rebound, whale movements and on-chain data changes at the time of the rebound, as well as the correlation with stock market and economic trends.
The current market conditions indicate a potential rebound, yet it remains premature to confirm the onset of a sustained bear market. It's important to observe key factors to make informed investment decisions.
