One of Santiment feed’s most popular metrics, MVRV, indicates that short, mid, and long-term timeframe trading returns are at ‘pain’ thresholds that historically foreshadow oncoming price turnarounds.
As MVRV-Z Score Closes in on the Macro Bottom
As per the average trading returns across different timeframes, Ethereum and Bitcoin are passing underbought signals. Bitcoin failed to reclaim its recent losses on July 2 as the market waited for price action to continue.
According to new figures, the market will likely fall further if the current trend continues. It has been argued that Bitcoin will eventually surpass its current $17,600 mark.
Decentrader’s co-founder and technical analyst Filbfilb, believes the MVRV-Z indicator has entered its classic green zone. However, it is not yet at the point where it can trigger a price bottom.
The MVRV-Z algorithm considers the various factors that affect the price of Bitcoin and computes its fair value. It combines the market cap and realized price data with standard deviation to create a more accurate and efficient prediction.
LookIntoBitcoin analysts suggest the MVRV-Z has caught every major macro bottom and top on the Bitcoin/USD exchange since it started its operation two weeks ago. It has only gone below its green zone once, in March 2020. A repeat performance would require more downside pressure. “This chart is *the one* for me,” Filbfilb commented about the latest readings.
$16,000 Bottom Zone Gains Traction
According to various sources, $15,600 would be a strong support area for Bitcoin, and it could be the start of a bottom. On Twitter, CryptoBullet noted that the $16,000 mark is an important support area and could be the beginning of a bear market.
The relative strength index of Bitcoin is at its lowest ever, which is a sign of the market’s overall decline. It peaked at almost $20,000 during the previous cycle.
The DeFi Crypto Market Movers and Shakers
The crypto market is expected to start a bear run in July. As the traditional economy continues declining, investors are starting to lose confidence in the asset class.
Despite the negativity surrounding cryptocurrency, the decentralized finance industry still shows promise. The total volume of DeFi is currently at almost $5 billion, which is nearly 10% of the total market cap.
According to DeFi News, the main gainers were Monolith Web3(TKN), DecentrNet(DEC) and Swerve Finance(SWVR) at around 40%, 27% and 12%, respectively. On the other hand, the top losers were Numerai(NMR), Creamdot Finance(CREAM) and Idex.io(IDEX) at around 24.7%, 17% and 18%, respectively.
Other Cryptos are on a Losing Streak
The price of XRP has decreased by 1.22 percent in the last 24 hours. Over the past seven days, it has lost 15.25 percent. Currently, it is among the top 8 cryptocurrencies in terms of market cap.
The Solana price increased by 1.11 percent to $33.13 in the past 24 hours. In the past seven days, the price of SOL has dropped by 17.11%. It is currently ranked as one of the nine biggest cryptocurrencies in market capitalization.
The price of the Cardano token has decreased by 1.19 percent to $0.4457 in the past 24 hours. The price of ADA has dropped by 11.17 percent in the past seven days. It is currently regarded as the 8th biggest cryptocurrency asset in market capitalization.
Dogecoin’s price has increased by 1 percent in the last 24 hours. At the time of this report, it is 10th in terms of market cap. Meanwhile, MATIC has increased by 2.24 percent in the last 24 hours. Over the past seven days, it has dropped by 24 percent. Currently, it is ranked 18th on the market cap of cryptocurrencies.
Source: https://crypto.news/bitcoin-btc-shows-overbought-signals-defi-assets-monolith-and-creamdot-finance-rise/