Expert Warns of Further Bitcoin (BTC) Price Dip: Here's Why

The price movement of Bitcoin has lately interested analysts, including top crypto analyst Ali, who warns of more dips to come.

Top crypto analyst Ali has observed a pattern of price dips following each rejection of Bitcoin’s Market Value to Realized Value (MVRV) ratio from its 90-day average.

According to Ali’s analysis, each time the MVRV ratio is rejected from this key level, it has preceded a substantial price correction.

After each rejection, BTC’s price has dropped significantly. For instance, following the rejection in May, BTC’s price dropped by 16%. Subsequently, it faced further rejections, leading to price drops of 26% in June and July, 29% in August, and 19% in September.

Moreover, the latest rejection, which occurred in late September, has already caused a 10% decline in BTC’s value.

Another crucial aspect highlighted by Ali is the MVRV oscillator, which is represented by the purple dots on his chart. This oscillator measures Bitcoin’s momentum and indicates shifts between positive and negative trends.

Whenever Bitcoin’s MVRV ratio faces rejection at the 90-day average, it signals a transition to negative momentum, which aligns with the sharp price declines.

As observed in Ali’s chart, each MVRV rejection has been followed by a shift in the oscillator to indicate negative momentum, coinciding with the substantial price drops.

This pattern suggests that Bitcoin’s current price weakness may not be over. Ali’s analysis points out that the oscillator’s transition to negative momentum has typically led to further drops. If the trend continues as it has over the past several months, traders should be prepared for more volatility.

Historical trends, as outlined by Ali, indicate that Bitcoin may experience additional losses if the pattern repeats. With Bitcoin already down by 10% since the latest rejection, the potential for further price dips remains a concern for traders.

According to CoinGecko at press time, Bitcoin is trading at $61,151.45 with a 0.45% decrease in the last day and a 6.60% drop over the past week.

In light of the MVRV ratio rejection, analysts and traders are keeping a close watch for signs of continued weakness in Bitcoin’s price.