Introduction
Bitcoin [BTC] price has dropped, and many people are wondering what will happen next. Experts believe Bitcoin might be overvalued and others think it could still recover. Right now, the market is full of fear, and traders are trying to figure out whether Bitcoin will go back up or keep falling.
Signs of BTC Overvaluation Appear
Bitcoin’s NVT ratio has dropped by 31.44% in the past day. This ratio compares Bitcoin’s price to how much people are actually using it for transactions. When the NVT ratio falls quickly, it can mean that Bitcoin’s price is too high for its current activity.
The last time something like this happened was in June 2024, when Bitcoin’s price fell from $3,500 to $2,100. If the same pattern happens again, Bitcoin could be in danger of dropping even more.
Why Are More People Talking About BTC?
Even though Bitcoin’s price is falling, more people are talking about it online. Bitcoin’s Social Volume, which measures how many people are discussing it, has increased to 1,546. Also, Bitcoin’s Social Dominance has reached 27.23%, meaning it is still the most talked-about cryptocurrency in the market. When Bitcoin gets more attention, it sometimes leads to higher demand and a price increase. However, just because more people are talking about Bitcoin doesn’t always mean its price will go up. Sometimes, the buzz is just hype, and people don’t actually buy more Bitcoin.
At this moment, Bitcoin is priced at $87,421, which is 4.71% lower than it was 24 hours ago. If this trend continues, Bitcoin could lose even more value.
Investors Are Scared—Will BTC Keep Falling?
Bitcoin’s Fear & Greed Index, which measures how people feel about the market, has dropped to 25. This means that many investors are feeling extreme fear and are afraid Bitcoin’s price will continue to drop. In the past, extreme fear has meant that Bitcoin was oversold, which caused its price to bounce back. But fear can also cause people to sell their Bitcoin, pushing prices even lower. Right now, traders are being very cautious because they don’t know what will happen next.
Bitcoin’s Price Is Breaking Key Levels
Bitcoin’s support level at $90,000 has been broken, which is not a good sign. A support level is like a safety net that stops Bitcoin from falling too much. Now that Bitcoin has fallen below this level, it could keep going lower. The RSI (Relative Strength Index), which indicates whether Bitcoin is being overbought or oversold, stands at 32.65, suggesting that Bitcoin is oversold and a recovery may be imminent.. However, if buyers don’t step in soon, the price might drop even further.
Conclusion
Bitcoin is facing uncertainty as demand falls and investors become more fearful. While many people are talking about Bitcoin, it is unclear whether this will lead to more buying or just more hype. The NVT ratio suggests Bitcoin could be overvalued, and the price breaking below $90,000 is a worrying sign. If buyers step in, Bitcoin could bounce back, but if fear continues, Bitcoin’s price could drop even lower. Traders are watching closely to see what happens next.
