While Bitcoin and the cryptocurrency market in general are witnessing a sharp correction, Bitfinex analysts said that on-chain data is giving a buy signal for BTC.
Stating that BTC gave a buy signal in the last Bitfinex Alpha report, analysts stated that this indicates a potentially attractive entry point for investors.
According to analysts, the MVRV ratio and open interest (OI) weighted funding rate signal an advantageous buying opportunity for BTC investors.
“The MVRV indicator has been declining since the beginning of April. A score above 3.5 indicates that the Bitcoin market is near a top, while a score below 1 indicates a bottom.
As of April 26, the MVRV ratio has dropped 10.5% from its monthly peak to 2.21, indicating that BTC may currently be undervalued. “This can be interpreted as a buying signal for investors.”
Secondly, analysts examining the OI-weighted funding rate stated that the OI rate moved to the positive zone on April 24 after falling into the negative zone the previous week.
At this point, Bitfinex analysts said that the transition from a negative funding rate to a positive funding rate indicates an increased interest in long Bitcoin positions and a change in market sentiment from bearish to bullish.
Bitcoin continues to trade at $60,930 at the time of writing.
*This is not investment advice.