Is $60K Inevitable as Bitcoin Price Turns Oversold Again?

Key Insights:

• Bitcoin (BTC) price nears oversold territory, with MVRV approaching 1.
• Whales stack $65M+ in buy orders below $60K, signaling strong conviction.
• $2.9B BTC and ETH options expiry could flip market momentum bullish.

Bitcoin price is teasing investors once again since, after a sharp pullback to below $65K, on-chain metrics are showing oversold signals while whale order books signal heavy interest in BTC right under $60K.

At the same time, an upcoming options expiry could flip the script and send BTC price to $74K. Investors are caught in a dilemma: will there be more blood down the road, or is this another shakedown on the pipeline before the real pump?

CryptoQuant analyst Crypto Dan has warned that Bitcoin is nearing an undervalued zone. His prediction was based on the Bitcoin MVRV chart, which signaled that the ratio was declining towards 1.

Generally, the BTC price is considered undervalued when the MVRV ratio falls below 1. The current reading on the MVRV ratio is 1.1 suggesting that the price is nearing this critical range.

Bitcoin Price MVRV Ratio | Source: CryptoQuant

A deeper look into the historical context of the chart revealed the bearish Bitcoin price pressure tends to accelerate before a reversal, especially when the MVRV dives below 1.

In other words, this is not a full-blown capitulation yet. Paper hands might get flushed.

Meanwhile, Bitcoin maxis (long-term holders) may not only survive but get a chance to accumulate at lower BTC price levels.

There is one exception, though. Bitcoin price behavior has been rogue in this cycle, and for that reason, the current decline may also differ from past market bottoms.

Hence, according to this data, a $60K Bitcoin (BTC) price is likely, as price action swings low one more time, unless the asset deviates from current expectations.

Whale Orders Stack Up Just Below the $60K Bitcoin Price

Coinglass’ large-orderbook shows a massive cluster of $65M+ worth of buy limit orders parked right below the $60K level from Binance and Coinbase whales.

This depicts classic whale behavior who think $60K might be the bottom before Bitcoin price bounces to the upside.

Bitcoin Large Order Book Statistics | Source: Coinglaass

The whale orders may easily absorb the BTC sell pressure if the price retests that zone. Whales often place their bids at carefully calculated levels where a BTC price bounce is more likely to take place.

We saw this in the first week of February, where a large cluster of whale long bids were executed for Bicoin price near $59,000.

BTC Options Expiry Could Ignite a Run to $74K

Moreover, 38,000 BTC and 215,000 ETH options totaling over $2.9B were slated to expire on Friday, February 13.

A short Bitcoin price squeeze may be on the cards, with such a large expiry approaching. The BTC Open Interest (OI) was notably heavily skewed toward calls above the current BTC and ETH spot prices.

Bitcoin (BTC) Options Expiry | Source: Wu Blockchain , X

The maximum pain point (the options strike price with the highest combined open interest) for Bitcoin lies at $74,000, and for Ethereum it is $2,100. These levels may act as magnets for price action post-expiry.

Is Bitcoin Price Truly Oversold or Headed Lower?

The signals are currently mixed for the Bitcoin (BTC) price. MVRV suggests more downside is possible, whale bids signal the market is nearing a buy zone at $60,000, and options expiry leans bullish.

The oversold narrative is already at play. However, history shows BTC price can stay oversold for longer than investors can stay solvent. Hence, this is a bitter-sweet situation.

Investors may want to keep eyes on three things:

1. Whether MVRV keeps dropping
2. If whale bids hold or get demolished at $60,000.
3. Post-expirty gamma squeeze action.

If Bitcoin price respects the whale wall and options expiry flip sentiment, $74,000 will be in play. If the MVRV breaks lower and bids get walked through, the $60,000 might hit, and maybe even lower.

The post Is $60K Inevitable as Bitcoin Price Turns Oversold Again? appeared first on The Coin Republic.