[Bitop Review] Bitcoin Plunges Below $60K, Liquidating 90,000 Traders and Sending Nvidia’s Market Cap Back to Third Place with Over 6% Drop

The Dow Jones Industrial Average rose 328 points, or 0.8%, on Monday as investors rotated out of large technology stocks and into other sectors, including banks and energy.

The S&P 500 rose 0.3%, while the tech-heavy Nasdaq Composite fell 0.3%.

Nvidia’s Market Cap Retreats

Nvidia’s stock price fell 5% on Monday, adding to a 4% decline last week, ending its eight-week winning streak. This sell-off comes after Nvidia briefly surpassed Microsoft to become the most valuable US company. Despite the recent drop, Nvidia’s stock is still up about 150% this year, making it the second-best performer in the S&P 500. Analysts believe Nvidia’s pullback is healthy.

Cryptocurrency Market Slump

While US stock indexes reached record highs, the cryptocurrency market experienced a significant downturn. Bitcoin’s price briefly dipped below $58,400 early on Tuesday morning, reaching its lowest level in nearly two months. At the time of writing, it has rebounded to $60,372, narrowing its 24-hour decline to 4.16%.

Ethereum followed a similar trend, but did not break below its previous day’s low of $3,212. It has since rebounded to $3,347, down 2.13% in the past 24 hours.

Over $360 million in liquidations occurred across the cryptocurrency market in the past 24 hours, with nearly 90,000 traders liquidated.

Greed or Fear?

According to technical analysis indicators RSI and MVRV, Bitcoin is in oversold territory, leading Bitop’s market analysis team to believe that now is an excellent time to buy the dip.

RSI is in oversold territory.

Back testing shows that in the past two years, Bitcoin’s RSI has touched the oversold zone three times, leading to price increases of 60%, 63%, and 198%, respectively. Currently, RSI is again in oversold territory.

Note: The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of price movements of a security. It is a versatile indicator that can be used to identify overbought and oversold conditions in various markets, including stocks, commodities, and cryptocurrency.

MVRV ratio is -8.96%.

Since February 2023, Bitcoin’s MVRV ratio has fallen below -8.40% four times, triggering price increases of 63%, 100%, 92%, and 28%. With Bitcoin’s price currently below $60,000 and an MVRV ratio of -8.96%, the Bitop Market Analysis Team believes this could be an ideal time to buy low!

Note: The MVRV (Market Value to Realized Value) ratio is a technical indicator used to assess the overall market sentiment for Bitcoin. It is calculated by dividing the current market capitalization of Bitcoin by its realized capitalization. The realized capitalization is an estimate of the total value of all Bitcoin at the price they were last purchased.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.