[Analysis] "Bitcoin in oversold territory...Rebound potential increases"

Analysis suggests that Bitcoin (BTC) has recently undergone a strong correction and entered oversold territory.

Crypto Dan, a CryptoQuant contributor, stated on the 13th, "The current (cryptocurrency) market is experiencing a strong correction at the tail end of an upward cycle," adding, "However, as it enters an oversold state, the possibility of a rebound is also increasing."

Crypto Dan emphasized that "the possibility of a rebound is not far off." He said, "If Bitcoin falls to the $70,000 range, the MVRV (Market Value to Realized Value) could potentially reach levels similar to the bottom of the 2024 correction period," but added, "Currently, market participants' sentiment is significantly contracted, and altcoins have given back most of their gains, resulting in most investors not making any profits in this cycle." He continued, "The market itself has already lightened sufficiently without additional strong declines," suggesting that "this can be interpreted as a favorable period to attempt an upward movement even without strong additional declines."

He pointed out that three factors should be monitored: the strength and magnitude of the rebound, whale (large investor) movements at the time of the rebound, and the correlation with stock markets and the economy. He stated, "It's too early to conclude that the market has entered a full-fledged bear market."