Bitcoin indicators signal potential reversal after mimic of April crash

On chain metrics including MVRV, supply in loss percentage, and long term moving averages signal potential trend shift.

Photo: Del Report

Key Takeaways

• Multiple Bitcoin indicators, including MVRV, Supply in Loss %, 365DMA, and RSI, are currently mirroring patterns seen before April's market crash.
• Technical momentum indicators suggest a potential shift in market direction.

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Bitcoin’s key indicators are showing patterns similar to those seen during April’s market crash, suggesting a potential price reversal may be ahead. The MVRV, an on-chain valuation metric highlighting potential market tops or bottoms in crypto analysis, along with other technical signals are flashing warning signs.

Supply in Loss %, a metric tracking the portion of crypto holdings currently unprofitable for investors, is displaying characteristics that mirror the April downturn. The 365DMA, a long-term moving average used to assess crypto trend reversals, is also contributing to the bearish outlook.

The RSI, a momentum indicator signaling overbought or oversold conditions in crypto trading, rounds out the collection of metrics pointing toward a possible directional change for the leading digital asset.

Recent analyses point to a death cross appearance in Bitcoin’s charts, often associated with bearish trends but sometimes preceding reversals.

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