Bitcoin Hits Most Oversold Levels in History: Massive Rally Incoming?

BTC-USD -0.66%

Bitcoin has reclaimed the $91,000 price while traders wonder if the bottom is in for the leading cryptocurrency and other digital assets. In this idea, Michaël van de Poppe highlighted that BTC is “at the most oversold levels in history,” according to an onchain indicator.

The indicator is the MVRV Z-Score, using the 2-year rolling variant. Basically, MVRV calculates Bitcoin’s current “market value” against the network’s collective cost basis, called “realized value.” The 2-year Z-score measures the standard deviation of this metric within a two-year window, offering cycle-oriented insights.

Based on this indicator—showing the lowest levels in the asset’s history, including the 2018 bottom and the 2022 “FTX/LUNA” bottom—BTC could now be at one of the most obvious bottoms, primed for a fast recovery, according to van de Poppe.

More Bitcoin and Crypto Analyses

The analyst later shared another analysis on Bitcoin, highlighting what he believes is a hidden bullish divergence in a “clear uptrend for BTC.” These indicators surge after the leading cryptocurrency has gone through one of its “heaviest” crashes, following October 10’s unprecedented liquidation event and further drops in a scenario described by BitMine’s chairman as a Fed’s quantitative tightening (QT)-like event for crypto.

Besides Bitcoin, Michaël van de Poppe is also looking at NEAR in what he deems an opportunity and “probably one of the single best opportunities to be accumulating a position.” This is because NEAR is currently trading close to its cycle lows, returning to “October 10 levels.”

Notably, NEAR goes through an interesting moment, with significant developments improving the sentiment around the project while its price lags at a year-long support zone, as Coinspeaker reported. Brave recently added Near Protocol’s stack for AI privacy and verifiability, followed by Kalshi, one of the leading prediction markets, adding support for the token in its platform. Moreover, NEAR Intents volume and revenue have been growing significantly while earning major industry support one month after the NEAR token had its inflation halving approved, reducing annual emissions from 5% to 2.5%.

Other market signals also point towards a bottom formation as whales and prominent figures position themselves with a bullish bias. Coinspeaker saw three large Hyperliquid traders opening high-leverage long positions on Bitcoin and Ethereum on November 26, while Arthur Hayes entered a buying spree, accumulating ENA, ETHFI, and PENDLE. Hayes is the former BitMEX CEO and one of crypto’s most influential analysts, who have also been buying and promoting Zcash in his X account.

Read original story Bitcoin Hits Most Oversold Levels in History: Massive Rally Incoming? by Vini Barbosa at Coinspeaker.com