Bitcoin’s Potential Surge to $90,000: Signs of Recovery Emerge as Overvaluation Fades
Historical trends and improving macroeconomic indicators suggest Bitcoin may be on the verge of a significant recovery. With the Market Value to Realized Value (MVRV) ratio dropping to 0.88, signaling losses but not as severe as past major corrections, investor sentiment is cautiously optimistic. This could shift to accumulation if macroeconomic conditions continue to improve, potentially paving the way for Bitcoin to rebound sharply and reach new highs.
Bitcoin Price Potential Breakout to $90,000 as Overvaluation Ends
Historical trends and improving macro indicators suggest Bitcoin’s recovery might be within reach. Bitcoin’s market value to realized value (MVRV) dropped to 0.88 this week, indicating losses but not as severe as past major corrections. Investor behavior shows cautious optimism, which could shift to accumulation if macro conditions improve. BTC tends to rebound sharply once the MVRV ratio finds a bottom.
Bitcoin Falls Below $80,000 as Weekend Liquidations Exceed $590 Million
Bitcoin fell below the $80,000 mark on Sunday as investor sentiment weakened across global markets. The move came alongside a spike in daily liquidations, which totaled $590 million. More traders are shorting Bitcoin after the worst Q1 in a decade, with short positions now accounting for nearly 53% of activity. Traditional markets also suffered sharp losses, with the Nasdaq 100, S&P 500, and Dow Jones all entering correction territory last week. Bitcoin closed the first quarter with a loss of 11.7%, making it the weakest Q1 since 2014.
Bitcoin Defies Market Turbulence, Outperforms Stocks
Today, while the US stocks declined by 5.98% over the past 24 hours, Bitcoin dropped by only 1.10%. Over the past week, the US stocks saw a decrease of 9.18% compared to Bitcoin’s 0.41% gain. BTC’s relative steadiness has grabbed the attention of traders and investors, with some comparing it with Gold for its stability amid the current market turbulence.
Bitcoin Consolidates While Altcoins Decline
Bitcoin remains stable as altcoin metrics show steep declines in engagement and performance. Recent on-chain data signals diverging trends between Bitcoin [BTC] and the rest of the altcoin sector. Analysts at CryptoQuant confirmed Bitcoin’s ongoing consolidation above $83,000. Meanwhile, altcoins grapple with heightened volatility, sliding engagement metrics, and depressed valuations. From October 2022 through April 2025, Bitcoin’s 365-Day Moving Average (DMA) consistently surpassed 30-day averages across the market, underscoring its dominant momentum. Altcoins seem to be losing steam.
Understanding Bitcoin Struggles: Realized Cap Indicates Bear Market
Bitcoin (BTC), the leading cryptocurrency, continues to trend lower. According to Ki Young Ju, CEO of CryptoQuant, the current Bitcoin bull cycle may be ending, based on the Realized Cap metric. This metric quantifies the actual capital entering the BTC market through on-chain activity. When Bitcoin enters a wallet, it represents a purchase, and when it leaves, it signifies a sale. By calculating the average cost basis for each wallet and multiplying it by the amount of BTC held, Ju derives the total Realized Cap, which reflects the total capital invested in Bitcoin at different price points.
