Although the recent cryptocurrency market scenario shows a significant correction with bitcoin about to break the $60,000 support, analysts at the Bitfinex platform indicate that now could be an opportune time to consider buying Bitcoin (BTC).
According to the latest “Bitfinex Alpha” report, Bitcoin presents clear signs that suggest a good entry point for investors.
Is Bitcoin worth buying now?
Analysts especially highlight the Market Value to Realized Value (MVRV) index and the weighted open interest financing rate (OI) as main indicators for this analysis. “The MVRV indicator has been showing a continuous decline since the beginning of April. A score above 3.5 generally signals that the market is at its peak, while a score below 1 suggests a potential market bottom,” they explain.
On April 26, the MVRV index recorded a 10.5% drop from the month’s peak, reaching 2.21. Experts interpret this change as an indication that BTC may currently be undervalued. “This could be interpreted as a buy signal for investors.”
Additionally, an analysis of OI’s weighted funding rate revealed that after a period of negative rates, there was a transition into the positive zone on April 24. “This shift from a negative to a positive funding rate indicates increased interest in long positions in Bitcoin, reflecting a shift in market sentiment from bearish to bullish,” the analysts add.
At the time of publication, the price of BTC was quoted at US$60,264.51 with a drop of 4% in the last 24 hours.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.
Source: https://portalcripto.com.br/bitcoin-vale-a-pena-comprar-agora-analise-de-indicadores-pela-bitfinex/
