Bitcoin Faces Decline While Polygon’s MATIC Presents Buying Opportunity

21 days ago

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The Bitcoin market is currently undergoing a slump, with its price hovering around $65,370, and there are increasing concerns about a further drop due to a lack of demand, particularly in the ETF channel. This, coupled with a negative market sentiment, has energized sellers. Despite the bearish outlook for Bitcoin, analysis suggests that Polygon’s native cryptocurrency, MATIC, may be at an opportunistic buying level.

Price Downturn for MATIC

MATIC’s value has recently seen a downturn, dropping below $0.9 for the first time since mid-February. The coin, which peaked at $1.26 in mid-March, has been affected by the broader market’s negative sentiment, partially influenced by Genesis’s GBTC sales.

Assessing the Right Moment to Invest in MATIC

Analysts are scrutinizing the MVRV ratio to determine the potential profitability of investing in MATIC at its current levels. The 30-day MVRV stands at -14.75%, and historically, those who have acquired MATIC when the ratio ranged between -5% and -15% have seen gains. Additionally, current data implies that the market has already accounted for recent losses, suggesting that investors with a medium to long-term view may hold steady without rushing to sell.

Points to Consider

  • Buying MATIC now could be profitable based on the MVRV ratio’s historical performance.
  • The market may have stabilized, with “weak hands” having exited, possibly reducing the likelihood of further sell-offs.
  • About 42% of investors are currently experiencing losses, indicating a potentially low point for entry.

As for MATIC’s future price trajectory, should Bitcoin’s price fall sharply, MATIC may also drop, potentially slipping below its $0.88 support level and the 100-day EMA, with a further possible decline to $0.81. Conversely, if MATIC overcomes its $0.92 resistance, a push towards the $1 mark could be on the horizon. While historical data offers insights, it’s essential to remember that market predictions remain uncertain and past trends do not always dictate future movements.

The post first appeared on BH NEWS: Bitcoin Faces Decline While Polygon’s MATIC Presents Buying Opportunity
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