Bitcoin faces MVRV death cross signal, is there more selling ahead?

MVRV data shows Bitcoin is under pressure, indicating that the currency is currently forming a death cross.

Bitcoin technical data indicates that more selling may be ahead.

Despite market data showing persistent bearish sentiment, some analysts remain optimistic.

How high Bitcoin price may rebound is still unknown, but it sets the stage for long-term growth.

Bitcoin, the world's largest cryptocurrency, is once again under selling pressure as key on-chain indicators show bearish signals.

CryptoQuant data shows that the market value to realized value (MVRV) ratio has formed a death cross. This technical pattern usually means that BTC may be in a downtrend.

As the currency struggles to maintain key support levels, investors and traders are now nervous, wondering if a price correction is imminent.

MVRV Death Cross Rings Alarm Bells for Bitcoin

Market data shows that Bitcoin's current price fluctuations coincide with the bearish signal of the MVRV ratio. Notably, this indicator compares BTC's market value to its realized value.

This provides the market with data to judge whether Bitcoin is overvalued or undervalued. A death cross occurs when the short-term MVRV moving average falls below the long-term average. In other words, it indicates that prices may fall.

It is worth mentioning that earlier this month, Bitcoin’s 30-day MVRV moving average fell below the 365-day average, triggering this bearish signal. Similar patterns have also brought price corrections, as has been the case in past cycles when Bitcoin reached a local peak and then fell sharply.

Analysts point out that this is a warning that Bitcoin may have further to fall in the coming weeks. CryptoQuant analyst Yonsei_dent pointed out in a recent article that although Bitcoin MVRV has moved out of the overheated zone, there is no clear bottoming signal yet. This leaves room for more volatility as traders weigh whether Bitcoin can stabilize or if it will fall further.

According to market data, Bitcoin is struggling to stay above $82,000 after falling from $87,000 for a week. Unfortunately, selling pressure is increasing due to macroeconomic uncertainty and declining risk appetite.

If BTC bulls fail to hold the $82,000 support level, Bitcoin could fall below $80,000, entering a deeper correction range. Meanwhile, veteran trader Peter Brandt recently said that if the current bearish outlook persists, a drop to $70,000 is a reasonable expectation for BTC.

Key Support and Resistance Levels to Watch

As Bitcoin comes under pressure, stakeholders are closely watching the trends at key levels. Many experts believe that the $82,000 support level is a critical area in the short term. However, failure to hold this level could lead to a significant price drop.

The current consensus shows that the next major demand area is below $80,000, where buyers may step in to absorb the selling pressure. On the positive side, Bitcoin must reclaim $85,000 and turn it into support for any meaningful recovery.

However, the 200-day moving average and the exponential moving average in the $85,000-87,000 range still act as resistance, so this area is worth watching. If Bitcoin regains its bullish momentum above these levels, it could make another attempt to make a push towards $90,000.

Recently pardoned BitMEX co-founder Arthur Hayes even predicted that it could reach $110,000 As of press time, CoinMarketCap data shows that Bitcoin is trading at $82,003.08, down 1.21% in the past 24 hours.