Bitcoin's Dip: A Buying Opportunity or the End of the Bull Run?

The cryptocurrency market has experienced a volatile week, with the value of most large-cap assets declining significantly over the past seven days. Notably, the Bitcoin price fell below $80,000 for the first time since its near-vertical surge in November 2024, sparking discussions about whether the Bitcoin bull cycle has reached its peak.

However, the latest on-chain data suggests that the premier cryptocurrency may still have room for a final upward rally. An analyst with the pseudonym Tarekonchain, in a Quicktake post on the CryptoQuant platform, revealed that the current market crash could be an opportunity for investors to buy the dip, based on a key on-chain indicator called the MVRV Ratio.

The MVRV (Market Value to Realized Value) ratio tracks the ratio between a coin's market cap and its realized cap. When the value of this ratio is greater than 1, it implies that more investors are considered to be in profit at the moment. High MVRV ratios are considered price top signals, as traders typically show a propensity to sell off their assets when they are in the green.

According to Tarekonchain, the price of Bitcoin peaked in every previous cycle when the MVRV ratio crossed 3.5. However, on-chain data shows that this indicator only reached 2.7 as the price of Bitcoin notched a new all-time high around the $110,000 region. The analyst noted that the Bitcoin price might not have topped out in the current cycle as its MVRV ratio is yet to reach 3.5 as it did in previous cycles.

The Quicktake analyst also noted that while BTC's slump beneath the 365-day moving average is undeniably a bearish signal, the premier cryptocurrency still has an opportunity to rebound from the critical $65,000 support level. If the premier cryptocurrency finds support and successfully rebounds, investors could see BTC target new all-time highs — the final peak of this cycle — around $120K–$130K.

As of this writing, the price of BTC stands at around $85,000, reflecting no significant movement in the past 24 hours. The price of BTC on the daily timeframe shows a clear downtrend, but the possibility of a final upward rally remains, according to the