The Bitcoin market got off to a disappointing start in 2024, failing to “go to the moon” as many analysts had predicted when anticipating the ETF approvals. After initially plummeting in January, BTC prices have found some stability and recovered recently. However, the past three days have seen more bearish momentum with rejection around $43k sending Bitcoin back down to $42k.
As chances increase for further dips, one analyst’s indicator could signal buying opportunities ahead.
Reliable Bitcoin Indicator Flashes Buy-the-Dip Signal
Ali, a cryptocurrency analyst on X (@ali_charts), often looks at the Bitcoin MVRV ratio. This metric compares Bitcoin’s current price to its fair value based on the average price of coins in circulation.
Specifically, Ali notes that each time over the past year when Bitcoin’s MVRV ratio fell below its 90-day moving average, it reliably signaled a prime buy-the-dip moment.
With Bitcoin’s MVRV ratio once again dipping below that key 90-day average threshold, Ali suggests now could be another opportune time to “buy the dip” on BTC while prices remain depressed.
Time will tell whether this indicator’s strong track record for identifying profitable entry points continues into 2024. But for investors willing to weather the recent volatility, Ali’s analysis indicates savvy traders may do well to accumulate more Bitcoin on the way down.
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